Currency, &c.—In the year 1822 silver became so scarce, that, it was impossible to get change of a doubloon without allowing a consideration for it. Foreigners, of course, bore the blame of draining the country of the money. To remedy the evil, small notes were issued; and, shortly after, a large supply of copper coin arrived, that had been contracted for in England. This currency of paper and copper was something so new, that not a few sneers and forebodings took place. The facility that paper money affords to business, however, soon began to be experienced in Buenos Ayres. Previous to its issue, if a person had to receive a hundred dollars, it was necessary to hire a porter to carry it, and for larger quantities a cart; besides the endless trouble of counting thousands of dollars, often in reals and madios, and the detection of bad money: hours and days of valuable time were consumed by it. The collecting clerks are no longer tormented with counting piles of silver, before they take it from the house. Saturdays are the days appropriated for money collecting.
Notes, engraved in England, are now issued on a grand scale, from 5 to 1000 dollars, upon the security of the government and bank; the people are reconciled to it, and begin to find that a currency of gold and silver is not at all times a proof of the credit or riches of a nation.[26]
Besides the above notes, the present currency consists of the doubloon of 17 dollars; the half, quarter, and half-quarter doubloon; the dollar, half dollar, and quarter dollar; with reals, madios, and quartillos. The hard dollars are scarce, being bought up for exportation.
In exporting money, there is a small duty of two per cent. to pay. Being so trifling, it prevents smuggling, which was formerly the case. Making returns in produce, however, is at all times preferred to money, when it can be obtained at any thing like a moderate rate; but it is at times so scarce and dear, that it renders the purchasing ruinous.
The average exchange for the last three years has been forty-five pence the Spanish dollar.
The Bank of Buenos Ayres opened in 1822, the first thing of the sort in this province. Its capital is one million of dollars, in 1000 shares, of 1000 dollars each. The number of directors are ten, viz. six Creolian gentlemen, and four British. It has hitherto proved a profitable concern. The Bank shares rose from par to 170, but quickly declined to 90 and 100 per cent. premium, at which price they seem stationary. The last dividend paid on Bank stock was after the rate of 30 per cent.
The reported establishment of a National Bank, has created some alarm, amongst the present Bank proprietors; numerous controversies have taken place in the newspapers, upon the occasion. The affair, however, seems at rest for the present.
The government funds of Buenos Ayres have lately had a considerable rise, from 28 to 100. The bulls carry all before them; and the bears have had to pay pretty handsomely. Who knows but a Stock Exchange may be established here some years hence?
Considerable sums of money have been made by the advance in the public funds in Buenos Ayres; and, from the eagerness of all classes to speculate in them, it is probable that lame ducks will not be confined to Capel Court. Every shopkeeper now dabbles in the funds; and, in a market so confined, the mischief may be very serious.