ARGENTINE REPUBLIC. 



35 



be destroyed, as a measure calculated to diminish 

 tin- service "i tho li-uii, and to improve our credit iu 

 tin- London market. 



'111.- total amount of the public-works lonn 

 was $24,000,000, of which some six millions 

 \vi-iv still in the hands of the London bankers 

 us late as September last. 



Tin- foregoing tables show the existence of 

 un ever-growing deficit in the Argentine 

 linuii'/es, as may be observed by comparing 

 the amount of the deficit of 1875 with that of 

 1874, and previous years. Nevertheless, the 

 u'ate revenue for the year 1875 is about 

 one million in excess of that for 1874. On 

 tin- other hand, the single department of War 

 and Marino consumed in 1875 no less a sum 

 than $10,181,116, against $8,006,801 in the 

 year immediately preceding, or an increase of 

 nearly two and one-fourth millions. It should 

 also be noticed that the expenses of that de- 

 partment, even in 1874, were far above the 

 normal standard, save in the case of such a 

 \\ ar as that which was terminated at Aquida- 

 ban in 1870. 



The general state of the Argentine finances 

 has been exceedingly discouraging for the last 

 three years ; but there is a decided tendency 

 to improvement. There is, however, reason 

 to apprehend that the true condition of affairs 

 will be found in the subjoined lines, under 

 date of Buenos Ay res, August, 1876 : 



The crisis in Buenos Ayres continues : trade is so 

 depressed that we believe twenty years ago there 

 was more business done in this market than at 

 present. Stocks and real estate show no signs of 

 recovery. Gold is at a high premium, notwith- 

 standing that it is hardly required for trade. We 

 see no failures in this market caused by the pre- 

 mium on gold. Paper-money is dearer, scarcer, and 

 tighter, than before the promulgation of the legal- 

 ti-ii'liT act. Many think that the proposed loan to 

 the national Government will cause a new emission 

 nml Hood the market with paper, but they err; the 

 Provincial Bank, which is admirably managed, has 

 withdrawn from circulation close on five million 

 hard dollars' worth of its specie notes, and thus is 

 prepared, if the Chambers so order, to advance to 

 the national Government without making a fresh 

 emission. When the wool season begins, gold must 

 be imported, owing to the few takers of exchange, 

 and tho probabilities are that paper-money will rap- 

 idly rise in value. Our produce is steadily increas- 

 ing; our wool-clip last year shows fully 24,000 bales 

 over the clip of 1874, and this year we look for a 

 similar increase. The great depression in River 

 Plate trade is entirely restricted to the branch of 

 our imports, and our exchange and money transac- 

 tions are reduced to legitimate business operations. 

 We confess we see much to induce the greatest con- 

 fidence in the country, and believe that the worst 

 of the crisis is over ; a crisis the like of which was 

 never before witnessed in these countries, and the 

 effects of which can be read in the four thousand 

 tenantlcss houses in this city, and the almost innu- 

 merable evidences of badly-employed capital; we 

 hnvu splendid and costly stores in the city lying 

 idle, strong rooms with nothing to lock up in tliem, 

 liarracus, custom-house stores, hotels, breweries, 

 tramways, even railways, all lying idle, the flotsam 

 an.! j t-.-im of the great crisis-wave that has swept 

 over the Plate ; but the waters are at last subsiding, 

 and business will be sounder and better than before. 



Tho following is tho text of the contract of 

 the national loan referred to by the writer 

 just quoted: 



FINANCE DEPARTMENT, October 8, 1876. 



Dr. Victorino de la Pluzu. Finance Minister, on the 

 "Hi- part, and Don Rufino Varela, Provincial Finance 

 Minister, on tho other part, being duly authorized, 

 have ugrued on the following terms: 



ARTICLE 1. The national Government authorizes 

 the Provincial Bank of Buenos Ayres to emit fur 

 national account ten million bard dollars in the ex- 

 isting form of emission. 



ART. 2. Said new notes, as well as twelve millions 

 already emitted by the Provincial Bank, shall re- 

 ceive a special stamp from the national Treasury to 

 guarantee the payment of said notes according to 

 the law of September 23, 1876. 



ART. 8. One of the national accountants shall reg- 

 ister the number and amount of the various notes, 

 as the officer of the Treasury stamps them. 



ART. 4. All notes must be so stamped before issue, 

 including those required by the bank to exchange for 

 old torn notes. 



ART. 5. Holders of present currency of specie-notes 

 may apply at the bank within a certain period to 

 change same for new issue. 



ART. 6. If, at the expiration of said term, the num- 

 ber of notes does not reach twenty-two million hard 

 dollars, the bank will proceed to emit up to that 

 amount, to supply any lost or destroyed. 



ART. 7. Any specie-notes presented afterward shall 

 be taken charge of by the bank. 



ART. 8. The above notes for twenty-two million 

 hard dollars shall be legal tender throughout the 

 republic, iind be received in full payment of taxes, 

 except in the custom-house, where they shall be re- 

 ceivable for half any amount of duties. Said notes 

 shall not be legal tender for any contracts outside 

 the province of Buenos Ayres previous to Septem- 

 ber 25th. 



ART. 9. The Provincial Bank will hand over ten 

 million hard dollars to the national Government, as 

 follows : 



In case of necessity the minister may arrange with 

 the directors to draw two months in one. For all 

 advances on this loan the Government will pay 4 per 

 cent, per annum. 



ART. 10. From November 1, 1876, the national 

 Government will begin to pay the Provincial Bank 

 one-twelfth of the custom-house receipts, or more, 

 if convenient, until the complete payment of this 

 loan with interest, as also of the balance due by 

 Government to the bank, viz., $75,294,108, with in- 

 terest till paid. At the end of every quarter after 

 November 1, 1876, the Provincial Bank will burn, 

 in presence of the national accountant and treasurer, 

 a sum of the new notes equal to the amount received 

 from the custom-house, until all the ten millions 

 be destroyed by fire. 



ART. 11. As soon as the national Government 

 shall have paid off the present loan and the balance 

 due the bank, this contract shall be at an end. 



ART. 12. The sums received from the custom- 

 house each quarter shall be applied in the following 

 order: 1. To redeem the ten-million loan now ad- 

 vanced ; 2. To pay off the balance and interest 

 already duo to the bank ; 8. To meet the agreed 



