Abstract
The article examines events during the economic crash in Argentina in 1890s. It explains the country´s situation, its political and social development during the economic crisis and also the case of the most important foreign investor, the Baring Brothers merchant house.
For better understanding, it also describes the economic situation of the country from the late eighties of the 19th century, analysing the related events. By writing the article, the author was influenced by the works of the leading experts in this specific field.
The article also summarizes the economic crisis in Argentina, generally known as the Baring Crisis, from the broader point of view, comprising the development of the railway infrastructure, export trade, migration and the growth of industry which helps clearly understand the objective of the given topic: the spendthrift policy leading to enormous foreign loans, economic disaster and the subsequent recuperation of the state economy and the Baring Brothers merchant bank.