They were originally of the nature of mortgage bonds on the national lands.
A married man may not sell or mortgage a homestead without his wife's consent.
But this resulted in so heavy a: burden upon the public that the law had again to be altered to extend hereditary rights, and to admit a system of mortgage which was assimilated to that for emiriye; but the evils were little more than palliated.
A homestead law exempts from judgment liens and forced sale a homestead not exceeding $2000 in value and consisting either of a farm not exceeding 160 acres or of property not exceeding two lots in a city or village; the exemption, however, does not extend to mechanics', labourers' or vendors' liens upon said homestead or to a mortgage upon it that has been signed by both husband and wife or by an unmarried claimant.
During this period the bank-note circulation was increased to $161,700,000, and two mortgage banks - the National Hypothecary Bank and the Provincial Mortgage Bank (of Buenos Aires) - flooded the country with $509,000,000 of cedulas (hypothecary bonds).