The persistence of the double currency——The history of paper money——The origins of the premium on gold, and its almost continual increase——The year 1890 and the depreciation of the currency——The causes of this depreciation; abuses in the issue of paper, caused by a bad financial and administrative policy.
Remedies suggested——Rosa’s law fixing the value of paper money and establishing a _Caisse de Conversion_——Opposition to this law——Its beneficent effect upon agriculture and stock-raising, which had especial need of a stable medium of exchange——Reserve fund created with a view to converting paper money; its vicissitudes in the past and its present constitution——The present monetary situation.
The principles on which the establishment of this institution is based——The necessity of a rapid redemption of fiduciary money——The doubtful success of this programme——New issues of notes——New attributes of the _Caisse_ dating from 1899——The exchange of paper for gold and _vice versa_——The development of this system of exchange——The authority attaching to the _Caisse_.
V. THE BALANCE-SHEET OF THE ARGENTINE ACCORDING TO THE INVENTORY OF SECURITIES 349
THE INVENTORY OF MOVABLE PROPERTY OR SECURITIES——The capital represented by movable properties, stocks, bonds, shares, etc., is the only kind of capital which lends itself to statistics——The great groups of movable properties: National Funds, Railway Shares, Insurance Companies, Foreign Banks, Mortgage Companies, and agricultural and industrial undertakings.
The nominal amount of capital represented by movable values—— Table of the annual revenues of the same, and the sinking fund——Division of this revenue among the different countries having capital invested in the Argentine.
English capital——The importance of English investments in all branches of Argentine activity——The benefits of a reaction in favour of Argentine capital——French capital; its small value compared to English capital——German capital and its rapid increase——Approximate valuation of that portion of revenue remaining in the Argentine, and of that which goes to the various nations having capital invested in the country.
THE BALANCE-SHEET——The assets are principally composed of exportation values; the liabilities, by the value of imports—— The revenue of investments exported to foreign countries, and the total of the sums expended by the Argentines abroad—— Table giving a summarised Balance-sheet and the balance in favour of the Argentine——International exchanges and the importation of gold confirm this favourable situation—— Argentine capital will presently play a more important part in the country as compared with foreign capital.