ARGENTINE REPUBLIC. 



37 





The floating debt comprised the following 

 items: 



Due the National Bank $10,652,000 



Due the Provincial Bank 4,647,000 



Due European banks 4,775,000 



Treasury notes outstanding 5,885,000 



Sundry indebtedness 4,119,000 



Total $80,023,000 



Less coupons 8,427,000 



Total $26,601,000 



According to the budget estimate for 1886 

 -'87, the income will exceed the outlay by $1,- 

 088,410. The expenditure is estimated to ex- 

 ceed the last budget by $2,590,000. There is an 

 increase of outlay of $3,533,000 in the Depart- 

 ments of the Interior, Public Instruction, Navy, 

 and Foreign Affairs, and a decrease of $943,- 

 000 in those of Finance and War. The increase 

 in the Department of the Interior, $1,825,000, 

 comprises $1,048,000 for railroads. 



During the fiscal year ended in April, 1886, 

 the province of Buenos Ayres had canceled 

 $11,599,442 of its bonded debt of $53,491,098, 

 leaving an indebtedness of $41,891,656. 



In consequence of the political excitement 

 engendered by the congressional and presi- 

 dential elections, the gold premium fluctuated 

 continually, and at times wildly. After the 

 excitement had abated, the influx of gold un- 

 der the national and provincial loans effected 

 in Europe hastened the downward course of 

 the gold premium. 



Early in January the Government made a 

 5 per cent, loan of 4,000,000 in London, at 

 80 per cent. During the summer the Provin- 

 cial Bank, in behalf of the province of Buenos 

 Ayres, negotiated a 5 per cent, loan of 2,- 

 500,000, to be issued Oct. 1, in Hamburg and 

 Frankfort, the amount eventually to be extend- 

 ed to 50,000,000 marks. 



The Government has been authorized by 

 Congress to create a national bank, with pow- 

 er to issue notes to the extent of $40,000,000 

 in the shape of cedulas hipotecarias for the 

 purpose of loaning money on landed property, 

 not to exceed 50 per cent, of its taxed value. 

 The rate of interest to be 6 to 8 per cent, per 

 annum, 1 or 2 per cent, to go toward the sink- 

 ing fund to be provided for gradually extin- 

 guishing the issue ; no single loan to any indi- 

 vidual to exceed $200,000. In addition to the 

 interest, the bank is to be entitled to 1 per 

 cent, commission ; the nation to guarantee 

 the issue and canceling of the debt, and a 

 credit of $1,000,000 to be opened at once, to 

 enable the bank to go into operation. 



Post>0ffice. In 1885 the Argentine Post-Of- 

 fice handled 20,050,000 letters, and 15,425,000 

 newspapers and packages. The amount of 

 postage collected was $709,250, being an in- 

 crease of 15 per cent, as compared with 1885, 

 and 75 per cent, greater than in 1881. The 

 number of post-offices is 637. 



Railroads. In October, 1880, there were in 

 operation in the republic 2,318 kilometres of 

 railway: national, 1,810 ; provincial, 348 ; pri- 



vate, 1,104. In 1886 there were in operation 

 6,152 kilometres, of which 1,877 were national, 

 1,104 provincial, and 3,160 private property. 

 There were consequently built in five years 

 3,834 kilometres. The total gross earnings of 

 all the railroads in operation in 1885 were 

 $16,150,894 ; of net earnings, $6,489,701. The 

 percentage of net earnings has been 7'32, 

 against 2 per cent, average in Canada : 3 per 

 cent, in Australia and Belgium ; 4J per cent, 

 in Germany and France, 4 per cent, in Eng- 

 land and British India, and 5 per cent, in the 

 United States. 



There were built in 1885 the following por- 

 tions of lines : 



Kilometres. 



On the Andine 95 



On the Northern Central 100 



On the Santiago del Estero 166 



On the Campana 158 



On the Buenos Ayres and Pacific 886 



On the Argentine Central 30 



Total.. 



Canalization. On Aug. 3 the Governor of the 

 province of Buenos Ayres submitted to the 

 Provincial Legislature the project of reclaim- 

 ing certain swamp-lands by means of drainage. 

 They are near the Salado, Vecino, and Sambo- 

 rombon water-courses, and subject to exten- 

 sive inundations. The lands alluded to cover 

 an area of 2,480 square leagues, constituting 

 about half of the entire province. There would 

 have to be expropriated two square leagues, 

 estimated to be worth $18,000,000, and the 

 digging of the canals will involve an expendi- 

 ture of $40,000,000. In order to raise this 

 amount, the Governor proposes to negotiate a 

 6 per cent, loan in Europe to the amount of 

 $54,000.000, which will probably net $48,000,- 

 000. The expropriated land he expects to be 

 able to sell for three times its cost. i. e., for 

 $54,000,000, and, adding thereto the '$48, 000,- 

 000 of estimated proceeds of loan, the sum 

 realized would be $102,000,000. Deducting 

 therefrom the $18,000,000 to be paid for land, 

 and $40,000,000 cost of canalization, there 

 would be a profit of $44,000,000, sufficient to 

 cancel the foreign loan if negotiated at 80 per 

 cent. 



Telegraphs. The lines in operation in 1885 

 aggregated 18,767 miles, and employed 1,283 

 persons. The telephone service now extends 

 70 kilometres beyond Buenos Ayres, facilitating 

 communication with the new port of call, En- 

 senada. 



Viticulture. The vine has begun to be exten- 

 sively cultivated in the provinces of Mendoza, 

 San Juan, Catamarca, and La Riorja, and the 

 wine made now competes with similar growths 

 from Spain and Italy. The import of wine into 

 the republic had mean while increased, notwith- 

 standing increased domestic production, from 

 $6,680,824 in 1883 to $8,259,816 in 1884; that 

 of spirits from $2,051,123 to $2,353,825, and of 

 beer from $584,866 to $825,717. 



Commerce. The foreign trade of the Argen- 

 tine Republic for five years has been : 



