Dr. Saenz Pena, the new President of the Argentine Republic,
assumed power, on October 12th, without opposition of any kind. The event is of some importance to this country, as the informal bankruptcy of the Republic was undoubtedly a leading cause among many of the wave of depression which has affected English business for the last two years. If the Republic, under new guidance, sets its finances straight, the Stock Exchange would be relieved of the burden of the Baring debts, all South American securities would rise, and confidence among investors would be much restored. Unfortunately, it is doubtful if the new President has either the will or the power to effect such a change. He is personally honest ; but he is said to be in favour of a liquidation which would be a disaster for all South American bondholders, and he is hampered by the State governments in Argentina. The Republic could pay a fair rate on its own debt easily enough ; but if it does not include the debts of the States in its arrangements, they may rise in insurrection. It is the federal system, as much as -corruption, which ruins Argentine finance.
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