The Washington herald., 1909-07-23

New York. July 2.-Because we have
shipped more gold to the Argentine Re
public this year than we did for the pre-
Yious ten years combined, our bankers
have fer some time suspected that not all
of the gold was needed merely for the
purpose Of preserving the balance Of
trade.
Il was even known. In fact. that this
progressive South American republic was
steadily building UP its gold reserve. and
that all Of the 900 IN United States
gold coin which we have shipped thus far
this year could not have been wholly on
account of London for grain and meats
shipped to Europe. although both Of those
classes OF food products have been shipped
In unusually large quantities.
The fact that the strained political re
lations between Argentina and Bolivia
have reached the point where their re-
spectiye ministers have either been re-
called or ordered to return home, strength
ems the belief entertained for some time
among international banking houses that
Argentina has been slowly building up
war fund TO meet Just such an emergency
as seems 70 be arising
Bolivia Has No Navy.
Bolivia, being an inland republic, has
no navy with which to Offset Argentina's
half dozen good fighting ships and a score
Of lesser war craft, otherwise Bolivia
might make a good haul by capturing the
steamship Verdi of the Lamport q Holt
! line, which viii leave this port tomorrow
with at least 81, 800 00O in gold coin for
Buenos Ayres, and II all the tentative en-
gagements Of gold should be put aboard
the aggregate would be more than
S. co., OO
Even the shipment OF $6.5OOOO0 viii DO
the largest consignment Of gold which
ever went from New York on a single
ship for any South American city. The
| largest amount we ever shipped to Argen-
tina in any one year before was IN 1906.
when we sent her Sl1OOO.o00 In the whole
year, a year corresponding somewhat with
this year. IN that II was about two years
after a panic. But IN 1915 Argentina had
/ no thought OF going 70 war with any OF
her neighboring republics.
Now the dispute over the boundaries
/ Of land between Peru and Bolivia, which,
upon being referred 10 the President or
/ Argentina was decided adversely TO the
| contentious OF Bolivia. threatens to cause
more than the usual South American IN
! rest.
| Not Necessarily War.
| The fact that diplomatic relations have
been suspended does not necessarily mean
war, but Il is safe TO assert that II Bo-
/ livia had any navy plying around the
| eastern coast OF South America about
/ now some OF the American bankers who
/ are shipping millions In the VerdFs hold
would be worried. Even as II is, the cost
/ OF the shipping 10000 Of our gold 70
| BuenOs Ayres. after paying the ordinary
| Lloyd insurance rates, will amount TO
| about $4,000. as the money cannot get
| there IN less than twenty-five days, and
interest upon the money for that length
| OF time VIII be wholly lost The insur-
ance alone will be more than $4,000. and
| IN addition 10 the interest charges un-
earned in this long transit. there is the
ccst Of packing, drayage. watching. and
the loss by abrasion.
/ Just before George B. Cortelyou went
! out Of the Office OF Secretary Of the
Treasury TO become the president OF the
Consolidated Gas Company IN this city
he reiterated IN his annual report the
! theory OF doing away with the physical
transfer OF the gold. by having some IN
| ternatiOnal agreement whereby instead
/ Of q country actually importing the gold
when 1t needed il, II could get q piece OF
yellow paper saying the gold was al
right in another country and would be
kept there on account. It is admitted
however, that IN a case like this Argen-
tina would not be satisfied with any gold
certificates. The new country Is full OF
MissOurians. and when II comes 20 q
question of payment in gold they all want
TO be shown the real yellow metal They
are very familiar with the United States
g,,fr nd ha OIL ~
the Goddess OF Liberty are highly re-
spected in financial circles. But they
must see them stamped on the metal t.
j cc1f