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Te Aroha News, Volume VIII, Issue 489, 16 July 1890, Page 4

In view of the recent cablegrams announcing the financial crash in Buenos Ayres the following extract from a letter from that place may be interesting:— “ Business has gone all to the dogs here, owing entirely to the pack politely denominated The Government, When I last wrote you gold must, have been at a premium of more or less 40 per cent., now ib is at 135 percent. (Dec, 5,1889) —that is tosay, the sovereign which was then worth about $7 of our paper money is now worth nearly sl2. The worst feature of the case is that the Government are not doing anything to alleviate the situation; on tho contrary, they are becoming more extravagant every day, so there is no knowing where m'q may end. They talk of building a grand opera house to cost £1,500,000, so as to outrival Paris. Congress Hall is to cost another million, and goodness only knows what more besides. Meanwhile, the working class, who are paid in paper, more or less at the same rates as last year, are almost on the verge of starvation. Tako my own case for example. If gold was at par my income would be £750 per annum ; instead of that, ib is little over £350, and decreasing daily. Then, in commercial circles, the crisis is coming on apace. In October one friend of mine failed for some two millions of dollars ; tw o days ago another firm failed for about six millions. These are only the forerunners of many more, as it is expected that during the next four months some of the strongest houses will stop payment; and in spite of all, our precious Government go on spending and thievingi ust as usual. Tho only bright spot on the horizon is that our crops pro- t mise to be splendid. You must excuse this long rigmarole about business, but really the one topic of conversation in Buenos Ayres now, with-men, women and children, be they swells or beggars, is gold. The very gamins about the streets can to' - you the latest {quotations of the gold market.” :