ARGENTINE FINANCES.
A notice of this extensive and rising country would be incomplete without some allusion to its financial condition, and in order to illustrate this more clearly I must revert to the year 1824, when the first loan of a million sterling was raised in London, to assist the young republic in meeting the expenses incurred during the War of Independence. That the money thus obtained was more or less squandered, and did not find its way into legitimate channels, is probable enough; nevertheless the liability was always admitted by the existing Governments, although interest had ceased to be paid on the loan for upwards of twenty years and the original stock was almost worthless.
At the period I allude to the revenue and resources of the country were small, and during the reign of Rozas they were entirely under his private direction, and the national means spent according to his will. In fact, what is now known as the Argentine Republic had no existence until after the downfall of Rozas in 1852, Buenos Ayres up to that period exercising sovereign control. A heavy internal debt, represented by paper money, had also generally reduced the value of the dollar (originally worth about four shillings) to two pence, and there appeared little chance of the English bondholders ever obtaining again the money lent in 1824, through the agency of Messrs. Baring Brothers and Co.
But on the downfall of Rozas, a new era dawned upon the republic. Many illustrious citizens, who had been obliged to expatriate themselves in order to save their lives, returned to Buenos Ayres, and the principles of constitutional government were again infused into the body politic, subject, however, to many vicissitudes, which, for a time, retarded internal progress, and prevented the real resources of the country from being profitably utilised. So soon as these difficulties were overcome the question of its indebtedness forced itself upon the Executive and Legislative powers, who wisely decided that their first great financial effort should be to come to some understanding with their English creditors.
At the same time a movement was set on foot by the bondholders themselves, and a Committee was formed in London, under the auspices of Messrs. Baring Brothers and Co., comprising some of the largest bondholders. Negotiations were entered into with the Buenos Ayres Government, who evinced every disposition to meet the matter fairly; and eventually, in the year 1857, an arrangement was come to by which the original debt in full, with its accumulated interest, was consolidated, and interest agreed to be paid thereon; and this arrangement has been most faithfully adhered to up to the present hour. The decree in which this honourable recognition of a great principle is contained is dated the 12th December, 1857, and is signed by the Governor Filipe Llavallol and Norberto de la Riestra the then Minister of Finance. I insert a copy of the document itself:—
Ministry of Finance.
Buenos Ayres, Nov. 20th, 1857.
The Government of the State of Buenos Ayres, in virtue of the authorisation conferred upon it by the law of the 28th of October last, has made the following arrangement with Mr. George E. White, representative of Messrs. Baring Brothers and Co., agents of the loan contracted in London in 1824 for settlement of the said debt, viz.:—
Art. 1st.—To meet the payment of the interest upon the original bonds the Government of Buenos Ayres engages to remit to the Loan in London in
| 1857 | the sum of £36,000 |
| 1858 | 48,000 |
| 1859 | 60,000 |