South AmericaHubbard, Gardiner G. (Gardiner Greene)
History
South America
Hubbard, Gardiner G. (Gardiner Greene)
South America
For some time Buenos Ayres and its dictator ruled the republic; then
the country provinces rebelled, and civil war ensued; one province was
arrayed against another, and all against Buenos Ayres. The provinces
prevailed and the gaucho general, Rosas, occupied Buenos Ayres.
Scarcely was this civil war ended when a war arose with the republics
of Uruguay and Paraguay.
{21} Money was required to pay the army and the cost of civil and
foreign wars. Every dictator had his friends for whom provision must
be made. Large debts were created; banks were chartered; $200,000,000
of paper money were issued. There were several different circulating
mediums; each province strove to outdo the others in the issue of a
currency which quickly depreciated. Companies for different purposes
were organized, and many were subsidized, directly or indirectly. We
are told that in one case $1,500,000 was paid for a concession, and
that "Turkish officials, who have hitherto been the champion artists
in backsheesh, leave off where Argentine blackmailers begin; the price
of a drainage scheme at Buenos Ayres would buy a whole cabinet of
pashas at Galata."
Railroads were built running from Buenos Ayres in different
directions, as each province demanded a railroad, with little regard
to its population or business.
A road was commenced to cross the Andes and open communication between
the Atlantic and Pacific over mountains which had never been crossed
by a carriage of any kind.
The country was not settled so rapidly as the rulers desired.
Inducements were therefore offered to immigrants. The passage money
from Europe and the expenses of the immigrant to his new home have
been paid and land for settlement sold at low rates. It is estimated
that over 1,000,000 foreigners have settled in the country during the
last twelve years, and the proportionate increase of population in the
same period has been twice as great as that of the United States.
Grazing lands have been sold at nominal prices to immigrants, or
leased for terms of years in lots of 6,000 acres at a rental of $100 a
year. Bonds were issued not only by the government but by the
provinces, by the municipalities and by the railroads, and all were
readily taken in England and Germany. To enable the emigrants to pay
for and to cultivate their land, the owner of real estate on
depositing his title deeds with the hypothecary banks and having a
valuation of his real estate, received cedulas, or bonds of the bank,
for one-half its appraised value; these cedulas for large amounts were
issued and sold in Europe; and thus, as ever, more money was required,
more bonds were issued. In 1889, a year of peace, the public debt was
increased 120 per cent., and it is now said to be over one thousand
four hundred millions of dollars, and the principal and interest of
two-thirds of this amount is payable in gold at a premium of 200 per
cent.
{22} In 1890 there was no money to meet the interest and general
prostration ensued.
Public-domain text, read in full here on John Shaqi.
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