12 JULY 1890, Page 2

A great crash is expected in South America. Both in

the Argentine Republic and Uruguay, everybody has been over- speculating, and the banks have been helping them. The National Bank in the former Republic has therefore de- layed payment of its usual quarterly dividends, in order to ascertain its true position ; while the National Bank in Monte Video has suspended cash payments for its notes. The Government has come to its assistance, decreeing that paper shall be inconvertible for six months ; but there is a run on the banks, and every sign of a general "liquidation." In the Argentine Republic, where the President, Dr. Celmen, is distrusted by financiers, the Government has proposed to issue 225,000,000 in notes, to be employed in withdrawing National and Provincial Cedulas ; but this measure has not yet been accepted by the Legislature. Gold is at twice its price, and there must be endless bankruptcies ; but it is not believed that the "crash" will permanently injure the Republic, which is prospering under the immense influx of Italian emigrants, who settle to work at once. It is possible that the distress of the city populations may lead to an insurrection in Buenos Ayres ; but it is not certain that this would be a bad thing, as the Government is suspected of fostering speculation. We have said a word on the subject elsewhere, derived from recent information, but must warn our readers that all Argentines, English as well as native, are optimists. They can never see that " resources " are not wealth until they can be got at. There is a dreamy fortune in Etna in sulphur, but Etna is not a bank.