ARGENTINE EEPUBLIC. 



29 



in interest and $2,396,242 in amortization. This re- 

 duction will, I consider, compensate for the advan- 

 tages offered to the bondholders, who, on the other 

 hand, in addition to the premiums, will have the se- 

 curity that their bonds can not be converted for ten 

 years, excepting so far as 1 per cent yearly amortiza- 

 tion, established by Article I, goes. If, however (but 

 that is not probable), holders refuse to convert volun- 

 tarily, there is nothing for it but to pay them off in 

 cash, at par; and, in this case, I think the new 5 per 

 cent bonds can be negotiated at a price that will give 

 the same results as the voluntary conversion offered 

 to the present bondholders. The operation can be 

 carried out in a lump, or successively, as may suit the 

 interests of the state ; and if, by some inconceivable 

 error, the bondholders totally or partly refuse to con- 

 vert voluntarily, in a very short time the increase of 

 public and private wealth, and the elements at the 

 disposal of the nation, will show that the country lias 

 sufficient means wherewith to amortize, in a short time, 

 at least the most onerous of its debts. The credit of 

 the country at home and abroad is rapidly reaching 

 the level it has a right to. Our debts religiously paid 

 even in the midst of the greatest difficulties, brought 

 on by our political errors and the effect of a cotnmar- 

 cial crisis, have gained confidence for us at home and 

 abroad, and consequently our credit is improved and 

 increased. JULIO A. KOCA. 



JUAN JOSE KOMEEO. 



It was regarded as probable that the project 

 would be passed, there being a majority in its 

 favor in both Houses. Another important bill 

 brought during the session was one for the 

 abolition of forced inconvertible paper money, 

 and the success of which was looked forward 

 to as all but certain ; indeed, the sanguine 

 went so far as to predict the return to specie 

 payments by the end of the year. 



" We are in the habit," writes a British 

 financier, " of saying the number of paper dol- 

 lars to the pound has fallen 10, from 149, at 

 which they were this time last year, to 139; 

 but a telegram has been received this week 

 informing us that they have very recently de- 

 scended to 127, or only 5 above par, the par 

 value of the paper dollars being 122 to the 

 pound. We have long said that paper and 

 gold in the Argentine country would come to 

 a level, as they have in the United States. Pa- 

 per has now arrived at that standard, saving 5 

 dollars on 122. The fact is most important 

 to the railway and tramway interests of that 

 country. It is also important to the country 

 itself, and its creditors. It affords a further 

 assurance, if any were wanted, of the perfect 

 good faith of the Argentines toward their 

 bondholders. When their 6 per cent bonds 

 were at 30, they never failed to pay the full 

 interest and apply the heavy sinking fund. 

 Now, that those cloudy days have passed away, 

 the country is at peace, prosperity in a full 

 blaze, and money matters are easy, of course 

 the case of the bondholders is better than ever. 

 The old 6 per cents have reached a premium. 

 But we can not say that the Argentines have 

 managed their financial matters well as to 

 raising new loans. The recent Paris loan of 

 3,000,000 ($12,000,000) for railway extension 

 was raised* at 82, and the more recent Lon- 



* October, 1880, 



don loan for similar purposes of 2,450,000 

 was placed at 91 per cent. Both these prices 

 seem high for 6 per cent Argentine loans, 

 especially when the old loan was at par or a 

 premium. The last London loan, issued at 91 

 price, is really better than the old 6 per cent 

 loan, which commands par or a small premium, 

 since the heavy accumulative sinking fund of 

 the old loan is rapidly paying those bonds off 

 at par. The 1868 6 per cent loan has already 

 been nearly paid off, and will be entirely ex- 

 tinguished by 1889. Therefore, those 6 per 

 cents can netfer go to much premium. But 

 the new 6 per cent loan, whose security is just 

 as good, has an accumulative sinking fund of 

 1 per cent, which discharges the principal at 

 par in 33 years. Therefore, these bonds may 

 reach a higher premium than the old, for their 

 time of repayment at par is much more distant. 

 The credit of .the Argentines being so sound, 

 and the prosperity of the country so great, we 

 should have thought that 6 per cents could 

 have been placed at par. The Buenos Ayres 

 Great Southern Railway 6 per cent debenture 

 stock is at 120 with the dividend just off, 

 and the Central Argentine Railway 6 per cent 

 debenture stock at the same price, at which 

 the purchaser only gets 5 per cent for his mon- 

 ey. The government security may never stand 

 so high as the railway, but there would have 

 been a wide difference if the government 6 per 

 cent stock had been placed at par, the railway 

 6 per cents commanding 20 per cent premium." 



The new departure in Argentine foreign com- 

 merce referred to in the " Annual Cyclopaedia " 

 for 1880 (p. 21), namely, an excess of exports 

 over imports, ruled in a still higher degree in 

 the year following the one alluded to in that 

 volume. "Ships now leave our ports," re- 

 marks President Roca, "with what we for- 

 merly imported, and each successive year we 

 have some new product to export. Here is one 

 fact : 4,000 tons of flax shipped from the coun- 

 try between January 15th and April loth this 

 year." 



Argentine 1868 six per cents were quoted 

 in London at 101 to 102^ on December 22, 

 1881. These securities first reached par in 

 December, 1880. 



The subjoined tables show the values, sources, 

 and destinations, respectively, of the exports 

 and imports for 1880 : 



From IMPORTS. Vulne.. 



Belgium $2,403,000 



Brazil 2,832,000 



Chili 503,00;) 



France 8,025,000 



Germuny 2,289,000 



Great Britain 12.10S.OOO 



Holland 844.000 



Italy 2,534.000 



Paraguay 806,000 



Sp:iin 2.894,000 



tinited States 3,120,000 



Uruguay 8,133.000 



West Indies 131,000 



Other countries 9S4.000 



la trunsitu 2,965,000 



Total $44,066,000 



