Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-30


settle the Mexican imbroglio. and Uru-
quay.
The total of the Argentine obligations
cedulas, or national mortgage bonds,
which are in circulation. Two years ago
the Argentine debt was approximately
1851, 100000. year later it had risen
nominally to $732, 000, 00O.
Recent figures as to the cedulas are
not obtainable, but probably they have
not decreased, because the land situation
was an internal cause Of the fiscal crises
which Argentina was experiencing. The
cedulas are in effect certificates of the
National Mortgage Bank to bearer in lieu
of cash issued to borrowers on real res
tate, and are guaranteed by the nation.
Provision is made for their payment
abroad. SO that they are in the nature Of
foreign loan.
Argentina's various loans. known as
Ordinary constitute approximately
$500. 100000 of the existing public debt.
Other obligations are known as the "spe-
cial loans" or special settlement of pro-
vincfal and municipal debts and railway
guarantees which have been assumed by
the nation. These are approximately
S137, 100000.
Something more than year ago Argen-
tina sought to float new loan in France,
but the conditions were unfavorable. A
new loan on the same basis would doubt
less still be desirable, but the Argentine
government would look to New York
rather than to Paris or London for funds.
Argentina is very careful of it's credit.
debt incurred by the province of Buenos
Aires before the various provinces were
consolidated into the republic was sus-
pended at a time of internal turmoil.
Fifty years later Argentina paid off the
obligation.
Brazirs various debt issues now ap-
proximate $500 000.O There have been
loans for public improvements and other
objects. Brazil, as vast country.
greater in size than the United States,
with undeveloped resources the extent of
which is not yet known, has been q free
borrower. The disposition in Europe has
been to allow liberal terms without ques-
tioning whether the future may not be
too much discounted. Brazil has met her
obligations and maintained her credit.
Within the last year there have been
various propositions for new loans to take
up the old ones. 1t Is not likely that any
Brazilian loan can now be hoated in
Europe, and none is therefore likely to
be sought by the government. Later,
when the inevitable reimbursement Of Bra
lillian finances takes place, Brazil most
likely will seek to place her loans in the
United States.
Chile now has outstanding obligations
in the nature of public debts to the
amount of S210.000,000. The country
has borrowed largely on the underlying
security of the nitrate beds and the
revenue to be obtained from them. The
European war interferes with the. de-
mand for these fertilizers, and a
temporary result may be that the work.
men In many of the nitrate fields will
be out of employment. However, the
permanent source of wealth which Chile
possesses in the nitrate beds remains.
At Santiago is heard frequent criticism
of the disposition Of the government
to make new loans. with fat commits
sions to the foreign bankers who fur
nish the money. 1t may be that this
tendency will now be checked. Financiers
who inquire closely as to security and to
the ability to meet interest payments.
as we'll as to the willingness to do it,
are satisfied with the. Chilean attitude.
The country scrupulously meets its for
eign obligations.
Chile Is anxious to utilize the Panama
canal as a means of improving her
relations with the United States. She
will also be glad to place future loans
In this country. especially since London
may not have money to spare.
Uruguay, for an agricultural country.
may be assumed to have pretty large
debt. since the total now amounts to