The Birmingham age-herald., 1915-01-31
BY FRANK G. CARPENTER

tive banks is the Banco Hipotecario Nacional which lends money on real estate mortgages, and in lieu of cash issues bonds therefor, which are pay able to bearer. They pass from hand to hand. The bonds are known as cedulas, and are guaranteed by the government. They bear or 6 per cent interest, and there are special pro visions as to their redemption. Of such bonds $250 .000 worth had been Is sued in 1909, and the bank has now as- sets of between S5,000. 900 and S6,000,0 ,000 The law requires it to place 50 per cent of it's profits to a reserve fund, and its safety is carefully guarded. Loans are made on farm lands at low valuation and on lots in the cities at 50 per cenl of their assessment On vineyards of not less than four years cultivation loans can be granted up to 90 per cent of their valuation, and building con struction loans up to 50 per cent of their assessment.
 The rate of interest on the bonds may not exceed 6 per cent and all loans are subject to annual reductions of l per cent. This bank has been in operation for almost 30 years, and it is said to have had much to do with the rapid development of the republic
 The foreign banks are doing q big business in this capital of the Rio de la Plata basin. This is especially sc of some whose chief offices are in Lon don. The London and River Plate bank has a capital of s9,00O,O00 and a sur plus of $5,000,000 more The London and Brazilian bank has a capital and surplus of almost s14,000,000, and the British bank of South America has a capital of over $10,000,000.
 The chief German banks are the Ia, ha German Bank of South America. The latter was founded by the Dresdner bank and the National bank TOT Deutschland whose headquarters are in Berlin, and the former is branch of the Deutsche Ueberseeischer bank. The Banco Aleman Transatlantico has a capital of 30,000,000 marks and the Banco Germanico 20,o0O,OOo marks My letter of credit is on London Issued by the Riggs National bank of Washing ton, and until now I have done my business here through the Banco Ale man Transatlantico, which is one of the correspondents of the London bank upon which my credits are drawn. The Riggs National bank is closely asso- ciated with the New York City bank, and any credits 1 may have in the fu- ture will go straight from one conti- nent to the other.
 mere Is great deal of Italian, French and Spanish money invested in Argentina. There are three large Italian banks, each of which has a big capital and there is one Spanish bank with a capital of S100, 900 in paper, equal to $44,000,000 in gold, and sur plus of over $40,000,0O0. This is the Banco Espanaol Rio de La Plata. It was founded 21 years ago, and it now has 16 branches in the federal capital in, Argentina and Uruguay. The capital of this bank is larger than that of the National City bank of New York and it has long been paying big dividends.
 As to the French banks the Banco Frances del Rio de la Plata founded about the same time as the Spanish bank, has a capital of s40,00O,OO0. in gold and a surplus of over s6,000,000. Its profits run from two to three million dollars a year, and it recently issued new stock at 10 per cent premium, and this was sub scribed for twice over by the sharehold- CTS.
 About the biggest Italian bank is the Banco Italia Rio de la Plata, which has an authorized capital of s2o, 900 in gold
 Nearly all of the banks of Argentina are making money. The interest rates in ordinary, times are from to 10 per cent. and in hard times like the pres ent 1 per cent a month is easily got ten, and the loan brokers charge more. One bank in Buenos Aires had last year about TOGO applications for loans, amount ing to something like hundred million dollars in gold. The profits of the Banco Espanaol in 1913 were more than five million dollars and the Banco Italia paid that year 12 per cent which was the same amount of it's dividends for 1910 or 1911. The Anglo-South American bank has been giving dividends of from to F per cent. The British bank of South America pays from 10 to 15 per cent and the London