ARGENTINE REPUBLIC. 



order by cable knows that it will be delivered here in 

 twenty to thirty days. So he is not required to keep 

 on hand such heavy stocks^ and can take advantage 

 of the fluctuations of prices in Europe. 



2. The advantage which steam communication gives 

 to Europe in its trade with the River Plate is greatly 

 enhanced by the fact that the mercantile firms doing 

 business here are, as a general thing, branches of es- 

 tablished houses in the business centers of the Old 

 World, or are the immediate agents, if indeed not part 

 owners, of manufacturing establishments in England 

 and France, thus giving the parties here a personal 

 and double interest in the orders which go forward. 

 They are thus enabled to obtain their goods at times 

 and in quantities to suit the trade, accompanied by 

 the most favorable terms and credits. I have, how- 

 ever, in former reports referred to this fact, and it is 

 not necessary to enlarge upon it. 



3. Another and most decided advantage which Eu- 

 rope enjoys is its banking facilities with the Eiver 

 Plate. The value of these, in the conduct of general 

 trade, can hardly be overestimated. The labor of ex- 

 change is a most important ingredient in the business 

 of reciprocal commerce, and certainly contributes as 

 much to its success as rapid transportation. The re- 

 ceiving and remitting of money and the settling of 

 balances are thus accomplished directly, cheaply, and 

 without trouble. 



The trade of Great Britain with the Argentine Re- 

 public is especially favored in this respect, possessing 

 banking facilities here in the River Plate of the very 

 first class. The "London and River Plate Bank 

 (limited) " is an institution which has been in opera- 

 tion here for the last twenty years, with branches in 

 Montevideo, Rosario, and Cordoba. It has an author- 

 ized capital of $10,000,000, of which $7,500,000 is paid 

 up, with a reserve fund of $775,000. The establish- 

 ment does a general banking business of all kinds, 

 except the issuing of circulating notes, and the branch 

 in Montevideo even has this privilege. It does a very 

 large and successful business. I have before me the 

 nineteenth annual report of the directors, being for 

 the year just closed, from which it appears that after 

 making allowances for bad debts, adding $100,000 to 

 the reserve fund, and paying $43,000 for the purchase 

 of banking-houses abroad, they have declared a divi- 

 dend of 4 per cent and a bonus of 2 per cent for the 

 last half year, being, with the interim dividend paid 

 last July, 10 per cent for the year, leaving a balance 

 of $40,000 to be carried to the account of profit and 

 loss for the current year. 



So great has been the success of this institution 

 that another English banking-house (the " English 

 Bank of the River Plate, limited ") has just been es- 

 tablished here, with an authorized capital of $7,500,- 

 000. of which $5,000,000 is paid up. Doing business 

 with the same facilities and on the same principles, it 

 promises to be equally successful. 



The Italians also have a flourishing bank here (the 

 "Bank of Italy and the River Plate"). It has a 

 paid-up capital of $1,500,000 and a reserve fund of 

 $160,000. Its business has been remarkably success- 

 ful, and it is now building a magnificent banking- 

 house in this city. I have not before me its last an- 

 nual report, but the dividend, after placing a large 

 amount to the account of the reserve fund, was 10 per 

 cent for the year. It enjoys a large share of the 

 public confidence. 



Besides these foreign banks, I would mention the 

 Bank of the Province of Buenos Ayres, which be- 

 longs to and is the fiscal agent of the province, with 

 branches in Dolores, San Nicolas, Chivilcoy, Mer- 

 cedeSj Lobos, Salto, Azul, Baradero, Chascamus, 

 Tandil, Vienti-cinco de Mayo, San Pedro, Pergami- 

 no, Las Flores, and several other points in the prov- 

 ince of Buenos Ayres. It has special privileges, is- 

 sues bank-notes which furnish the entire circulating 

 medium of the province and almost of the entire re- 

 public, has close and intimate connections with all 

 the money-centers of Europe, and does a large pro- 



portion of the exchange business of the country, do- 

 mestic as well as foreign. 



The only other public bank 'in Buenos Ayres is 

 the " National Bank of the Argentine Republic. " It 

 has its charter from the national Congress, and, as 

 it has branches at the capitals of the several prov- 

 inces, it is, to a large extent, the fiscal agent of the 

 General Government. With the late money crisis in 

 this country it was obliged to suspend specie pay- 

 ments, but it has since called in and redeemed all 

 its circulation in this province. Its notes, however, 

 still pass current in the other provinces, and furnish 

 the circulating medium for all parts of the republic 

 outside of Buenos Ayres. It has now fully regained 

 the confidence of the public, and its stock sells on the 

 Bolsa at a large per cent premium. 



BANK OP THE PROVINCE OP BUENOS AYRES. 



All the establishments I have mentioned do bank- 

 ing in all its branches. They discount bills, make 

 loans on negotiable securities, attend to collections, 

 receive deposits either for fixed periods or at sight, the 

 interest on which is regulated by the market value 

 of money ; issue bills of credit to parties traveling 

 abroad or for the purpose of purchasing goods, trans- 

 fer funds, and sell exchange on the principal cities 

 of Europe. I may state here, as a matter of some in- 

 terest, that the rates at present allowed by the banks 

 of this city are as follows : On deposits in account- 

 current, 3 per cent ; on deposits subject to thirty days' 

 notice of withdrawal, 3i per cent ; on deposits for 

 ninety days fixed, 4 per cent ; and they charge 9 per 

 cent on debit balances in account ; discounts are con- 

 ventional, according to circumstances, but generally 

 about 7 per cent. 



It will be seen from the foregoing that the nations 

 in Europe, in competing for the trade of the River 

 Plate, have at least three very decided advantages 

 over the United States, to wit, regular steam commu- 

 nication, intimate business relations, and extensive 

 banking facilities. These are the commercial levers 

 of the world, and place them in a position to keep the 

 control of the commerce of the Argentine Republic, 

 only permitting us to supply such articles as they 

 can not furnish, such as lumber, raw tobacco, kero- 

 sene, alcohol, sugar, and a few other articles of prime 

 necessity, and a small but uncertain trade in furni- 

 ture, hardware, cottons, drugs, paints, agricultural 

 implements, groceries, ship - chandlery, stationery, 

 etc. , mostly received on special orders. 



In considering the methods by which the com- 

 merce of the United States may be promoted, I have 



