Currency of Uruguay moneda national" (peso national currency). The economy picked up after 1876 and the 1880s were a period of prosperity and expansion. Internal peace was achieved in 1884, and there was a heavy influx of foreign capital. The Reus Law of 1887 made it easy to establish new banks (the most important of which was Banco Nacional). While Uruguay's neighbors, Argentina and Brazil, were obliged to use inconvertible paper currency, Uruguay continued to use gold. By 1889 the flow of foreign capital was drying up, and the prices paid for Uruguay's exports were falling. Gold was leaving the country, and Banco
Economic history of Argentina conditions. Urquiza, president of the Confederation, issued the 'law of differential rights', benefiting the ships trading with the ports of the Confederation and but not with Buenos Aires. The end of the civil wars provided the political and legal stability necessary to assert property rights and cut transaction costs, contributing to the huge inflows of capital and labour resources that built modern Argentina. In 1866 an attempt was made to stabilize the currency, by introducing a system of convertibility, which restricted the monetary authorities to issue paper currency only if it was fully backed by gold or convertible foreign currency.