Page:The Economic Journal Volume 1.djvu/557

 NOTES AND MEMORANDA 535 The addition of Confederate times were enormous influx, which in about six years amounts to an over 1,000,000 to the pre-existing population of the States, increased movement in every direction. The those in which the largest organising powers of a good administration should have been exercised. Unusual activity was manifested abroad in all the ports and places whence emigrants directed their course to Buenos Ayres. In 1888, maps, plans, and in- formation were advertised from the 'Argentine Government Information Office' in London. In other places informatiou was abundantly pro- vided, whether at the instigation of the Government or by private speculators is not now quite clear. In the Argentine Republic, owing to the unfailing supply of foreign capital, provision was found not only for the legitimate needs of the Government, the capital, and the pro- vinces, but a huge system of peculation was covered by the prosperous tide that appeared always to rise from an inexhaustible source, and to show no sign of ebbing away. Discontent, at first muttered under breath, assumed larger pro- portions, and in 1890 broke out in a revolution which was only half-hearted. The President, Celman, disappeared, but no prosecutions have followed either in his case or in those of his associates. The statements of the ' Caja de Conversion,' reported in the Buenos Ayres ,Standard of June 13, the report of the Argentine National Bank, and the report of Dr. Lopez, Minister of Finance, with numerous pieces of documentary evidence now coming forward, afford material upon which ample work for the Law Courts in the Republic may be founded, when- ever the public conscience is so stirred as to desire to exact an account from the evil-doers of the period antecedent to Juarez Celman's resignation. It is quite possible that a very considerable sum might be recovered if legal proceedings were taken, as the reports in question relate to a series of frauds perpetrated upon the nation. The event opening the way to the greatest monetary disturbance was the passing of the free Banking Law: the curzo forzoso or paper currency decree had already produced evils; but the abuse of the free Banking Law has led to the paralysing influence of a gold premiunl which calls for over 400 paper money against 100 sterling. As the interest upon all the loans raised abroad, whether national, provincial, or municipal, was payable in sterling, default was everyday coining nearer when the gold premium, as low as 10 per cent. in 1886, advanced to 30, 50, 80, over 100 per cent. up to the rates lately ranging, and which are aggravations of the crisis in which every firm or institution trading with the River Plate is held to be of doubtful credit. The measures taken in London in connection with the Baring liquidation were not only necessary, they were imperative if default on the part of the Argentine Confederation was to be avoided. The iinpossibility of meeting interest payments upon the debt while their amount was quadrupled by the gold premium was so obvious that the parties to the Baring guarantee could not afford to overlook the urgency