143 



based on tho .quotation of cereals on the market at tin 

 moment of exchange, and so according to the fluctua- 

 tions of the market they rise and fall with the rate of 

 exchange. 



As the crop is bought up by the consumers and 

 exporting houses and removed from the deposits or ele- 

 vators, for shipment abroad, or for local consumption, 

 the warrants are gradually withdrawn from circulation, 

 and with them the credits and advances on discount are 

 gradually annuled, and each succeeding crop sees each 

 year new warrants. 



We can appreciate the working of such and the 

 inestimable value of the combination, in the alleviation 

 of the distress over the disposal of the ci*3p which at 

 present is beyond all other combinations, (and undeni- 

 ably ever}- combination has been proposed and studied 

 by the present Government in its efforts io provide a 

 satisfactory solution to the difficulties of liquidating our 

 crop, at not satisfactory prices, alone, but to dispose of 

 it at all, at any price)- 



I venture to state that n.ot one of the difficulties 

 which have characterised the history of our crops for 

 the last two or three years would have been experienced 

 if we had had elevators, for they have nor been ex- 

 perienced in countries where elevators and warrants 

 exist effectively. 



The U.S.A. of North America, and Canada have 

 handled a crop 10 times greater than the Argentine 

 crop, have facilitated 100 times the credit which Argen- 

 tina is struggling to accord, and they have done it 

 without having to record one of the difficulties which 

 seem here insuperable. 



Owing to the failure to dispose of some 2 millions 

 tons of wheat, to cite wheat alone, we have seen our 

 finances all upset, the Government has experienced 

 troubles unending, (not to mention our farmers) all of 

 which would disappear as if by magie were the cons- 

 truction of elevators undertaken in earnest, and the is- 

 sue of warrants placed on a sound basis. 



There would be no need of special credits, nor d"- 

 erees of minimum prices, nor prohibitions of export, nor 

 would the proposal of special emission of paper money 

 be heard to lower credit, increase prices, and intimidate 

 the already too timid Argentine investor. 



WHEAT versus GOLD STANDARD. 

 The idea of the Gold Standard is conventional : a 



