REPUDIATION IN ARGENTINA.

New Zealand Mail, Issue 1695, 24 August 1904, Page 68

REPUDIATION IN ARGENTINA.

One often hears of the magnificent resources of Argentina in til© way of pastoral and agricultural production, but occasionally items of news crop up that would lead one to suppose that everything is not as well with that republic as ita admirers would have us believe. The Buenos Ayres “Standard” of May 8, contains a lengthy report of the President’s message, which *is truthfully described as a “glowing document.” Everything is painted in the .brightest colours;' the finances, agriculture, livestock husbandry, and business generally, are said to ba marvellously advancing. On May 22 the same paper has an article, headed “Another Repudiation,” in which it announces that the municipality of Cordoba lias repudiated its liability to pay the foreign debt which it contracted in 1888 and 1889, the service of which has been suspended for 14 years. The debt consisted of £200,099 contracted in 1888, and £600,000 contracted in 1889. An arrangement was made with the bond-holders some time back by which they consented to lose a large portion of the interest due, but this arrangement the corporation has since repudiated. On this matter the journal mentioned makes the following remarks“As for the allegation of the inability to pay, it is absurdly inconsistent with the recent message of the Governor of Cordoba, in which he sets forth the wonderful progress of the province and of its capital. It must ba remembered that the city of Oordc/ba being the seat of government, the provinoa is morally, if not legally, responsible for money borrowed and used for public improvements.” The beading of the article quoted from “Another Repudiation,” shows that this is not the only instance of a public body endeavouring to shirk its liabilities. The bondholders, it is expected, will commence legal proceedings to recover the whole of the debt.