BANKING. The first hank established in Argen tina was the Ilaneo de la Provineia Buenos Ayres, opened in 1822. it was followed a number of other banks, but none of them managed to exist long, as the insignificant commerce of the country was not sufficient to maintain such in stitutions. The real banking history of the country dates from 1872, when the Banco Nit eional, with a capital of 50,000,000 pesos, was founded. In 1882 the first foreign bank, the Banco Italiano del Rio de la Plata, was estab lished, and the growing commerce of the country soon led to the establishment of French, German, and Spanish banks, which the respective nations established in the interests of their own com merce. By law of November 3, 1887, national banks, resembling those of the United States, were established. The creation of those banks without proper safeguards thrown around them, followed by great abuse of the inadequate law by Government officials, soon resulted in flooding the country with worthless paper money. Speenlo tion on a scale that left far behind the worst features of the German Grander fever in the early seventies, and resembling much the excesses of the days of .John Law (q.v.) in France, gave
the country for a time the appearance of genuine prosperity; the 'boom' was skillfully utilized through the medium of the Paris Ex-position of 1889 to attract still more foreign capital, and the scramble for wealth went on, until it culmi nated in a financial panic. The panic swept away the numerous national hanks, most of which had nothing hut paper and a political "pull" with the directors of the National Rank at Buenos Ayres as their chief assets. The Na tional Bank itself, robbed of its capital by its directors and by politicians, was declared in solvent, and was reorganized in 18'91, under the name of the Banco de la Naciiin Argentina, with a capital of $50,000,000. In addition, there are 14 State banks. In 1891) the paper peso was fixed by the Congress of Argentina at .44 of the gold peso, thus contributing to the stability of the currency.