8
THE SCB ANTON TRIBUNE-8 ATUKDAY MO flKING, SEPTEMBER 19, 1890.
FREE , SILVER AS IT JREXlLY I
C . . , ,
.Operations of the Silver Standard Showe by Actual Observation Examples of Span
ish America From ilexico All the Way to Chill the Silver Dollar .Has Left a
Track of Poverty from which the People Are Straggling to Get Away,
Those who l.Hii'vo that the finnnrial
ninl Industrial romlltlon of the Vnlteil
StatPH would be improved by "the free
i'!llinre uf silver ami (fold ut the ratio
nf lu to 1." or any similar rntlo. ar-
not unjustly oalleii upon to present
nhli'iu'o of the advantage of this
system, such evhleiiee can tie uVrlvcl
only from experience and observation.
It is known that the system was tried
in this country ut the lieiclnnlm; of the
century wl'h disastrous results. It Is
filiandoni'd hy nearly all European
countries. Hut If there are any ex
amples of its present application tinder
eNistliiK condlliun they must be in
structive to us.
Such examples are to be found at
the present time, except in Asia, only
in a few of the Spanish-American re
publics to the south of us. Most of
these have had so bitter an experience
with the system that they have aban
doned it or have taken steps for "its
abandonment. It is of these countries
that we must look for a practical II
lustralioii of the working of the sys
tem, ninl the aeoounts which follow
have been pattierd by The Timei
from recent iiflii-ial reports or from
the statements of well-informed per
sons ,who speak from personal knovv-1-dee.
SILVER IN MEXICO.
A t ilirn ot Tevns, Nenr Hie Harder,
Tell hut He Has OIervcd.
The lion. K. K. Traver, a prominent
citizen of Laredo, Texas, unci a mem
ber of the house of representatives of
thai slate, bus recently written a let
ter in response to thu Inquiries! of a
Northern correspondent, which Is
printed In the Laredo Pally News ot
.Inly SO, und a portion ot which we
copy:
"For the past thirty years T have had
an Intimute acquaintance with Mexico,
from living- on this border and travel
ing lu the Interior of that country at
many different timed uiiriiifr this p?r
lod. and what I shall write Is dictated
by observation and not from hearsay
or I henry.
'1 will sUte viyht here that fur tlio
I ii.-t four years Mexican money has
li actuated in Laredo at from 4S to 5.1
cents on the dollar. That is to say
thai within that lime 48 cents ill an
American pilver dollar would buy a
.Mexican silver dollar.
' Nor has the difference been eonfiiie.l
to Laredo, Texas, for you can get on
the Mexican National Komi at this
poiui and travel to the Oily ot Mexico,
i, distance of (i:i." miles, passing through
on j, our way six stales and many of
the largest and wealthiest cities of that
country, and there id no point on the
t to but that you will find that tills
41 grain American silver dollar will
buy one dollar and ninety cents of
Mexican silver dollars.
"The fame difference is reeofvtiized
In any of their stores when you offer
the silver dollars ot the lwt coun
tries. "Attain you will fiinl lliat, beyond Its
twlculturul products and a few coars
er and limited manufactures, that the
noods nro bought in Kuropeun and
America, markets nt Bold standard
prices, ami are marked up to be sold
In Mexican money (after allowing for
all chanson nnd prollt to be made), a;
nearly double their cost In Kohl stand
ard countries. That, is to say that n
article costing one sliver dollar in the
1 'lilted States will be marked one dol
lar and ninety cents in Mexican money
to cover the difference in values exclu
sive of the mutter of cost, carriage and
proMls.
GOLD WORTH ?1.30.
"The Inquiry naturally arises: Ild
thia Uifierence always exist? liy no
means; for if you will take the trouble
to Investigate you will ascertain that
in 'Mexico there has never been any
limitation on the coinage of either sil
ver or gold at the ratio of 16.3U to 1,
but that government has never pledg
ed to keep the two dollars on a parity.
The consequence each dollar as It Is
coined depends upon iU bullion prtce
as its basis of value. And though
thera haB been no restriction on coin
age ot gold, gold coins of Mexico are a
curiosity In that country, and one of
thorn will purchase anywhere in that
republic $1.90 of Mexican silver dollars
and hut one American silver dollar.
"Now, sir. If you will supply yourself
with a table of the bullion value of an
ounce of sliver in London for the past
thirty years and compnre the quota
tions of silver ounces and Mexican st!
vr dollars you will find that the
vi r dollar, pledged by its government
Mexican silver dollar rises and fails
with unerring certainty with the bul
lion value of silver. Commencing as
far back as 1S70, when the average
price of silver per fine ounce was CO
9-16 pence or $1.33 In gold, Mexican sil
ver dollars sold readily in the United
State's for one dollar und ten cents in
gold.
"Coming down to 1S71. prior to that
"alleged crime," you will tind that sil
ver ner fine ounce hail fallen to 09',;
pence, and Mexican silver dollars wer-
selling in the United States for but
a little over $1.08 In gold, and follow
In on drwii year by year, leavlrg off
i ho fractions that s'lver per line ouncs
was quoted: r.X-J6-52-51-30-5lMS-4' 41--:r.
(lKiiti Sherman act) 4.1-39 (repeal ct
Sherman pet) SS and lXS.'i, 29. These
ere the average prices year per year
from 1873 down to and including J&95
In pence.
HOLLAR FALLS WITH BULLION.
"Now. my dear sir, If you will go to
the files of any newspaper publisher
the market reports Ince 1870 you will
find that the Mexican 420-graln sliver
doilar fell cent by cent as the bullion
value of silver went down, until now,
with her mints still open to Its unlim
ited coinage and declaring it a legal
tender and money of ultimate redemp
tion, wjthout any promise to maintain
it on a parity with gold dollars, we are
confronted In 1896 -with the undeniable
fact that an American 411' grain sil
ver dollar, pledged by its government
to be maintained on a parity wl;h
gold, will In the very capital of Mexico
buy $1.90 of Mexican silver dollars,
that Is to say. these dollars, as com
pared with gold, have dropped in value
since 1S73 from $1.10 to ,:;, the New
York quotation on the irTth of July,
.ISA.
"I will, my clear sir, give yon anoth
er fact which has an important rela
tion to this subject, and that Is, the
Mexican laborer go the Tesaa aide of
the Rio Oand have from time Im
memorial been paid In Mexican money,
and. In all this fall In the value of the
Mexican dollar they have continued to
receive the same number ot dollars
tier month. That is to say, they got
from $9 lo $l"i per month In 1S70. when
Mexican money was worth $1.10, and
are getting the same wages today in
the .Mexican money, when it Is worth
only cents on the dollar and every
thing they buy on this side Is priced
in American money.
"tine more fact nnd I am through.
American Ingenuity, pluck and capital,
with the assistance of Improved ma
chinery and methods, can now convert
mountains in Mexico into silver and
make a profit In selling their bullion at
CO cents an ounce, and ail they need is
an ununited market to increase the
output of these mines to almost any
amount.
"You must not forget the fact when
you hear tell of the prosperous condi
tion of free sliver Mexico, that millions
and millions of foreign capital has
poured into the country in the pa.it
twenty years to develope her wonder
ful resources under the protecting hand
of I'orfitio Diaz, the greatest and most
conservative statesman of this age."
AT THE COST OP LABOR.
The principal factor In the recent
proseprlty of Mexico Is the cheapness
of labor. An American largely en
gaged lu manufacturing enterprises
there writes: "All over Mexico thu
worklngman gets today the same
wages lu silver as he got when the sil
ver dollar was ut pur. In one concern
in Mexico where 1 employ SUO men we
are now paying just the same amount
in silver dollars as we did years ago,
though for our product we nre getting
just the same price in gold as wo did
then. Now, 1 hough I he iwotkltimau
only gets a dollar worth (:!'-j cents, in
place of the dollar that used to be
worth loo cents, all articles of com
nn rce have risen from To to 100 per
c-nt. Who g:iiiiS by this'.' Tiie capital
ist, of coarse.
" manufacturer, a. coffee grower or
a mine owner, (except a silver mine-
owrn-ri cun product an article for
which he gets paid on a. gold parity,
but he pays his workmen in depreciat
ed silver, or only about one-half he did
before. No wonder on such a basis
Mexican industries are mnking rapid
strides, but. at whose expense? That nf
Ills working class. The average dally
wages In Mexico today for unskilled la
bor Is fi lo 50 cents, and for skilled la
bor f.O cents to $1 Mexican curerney.
Now. Ihese Mexican workmen an by
no means an unhappy or discontented
class. On the contrary, they live with
as much freedom from care as the birds
of the air. Thcv have no fears, no
hopes, no ambitions. Their wants at'.!
few; u cotton suit, a serai, a straw hat
and sandals for their wardrobe, mab.o
cakes and beans for their food, and an
occasional spree on mescal or pulque.
.with plenty of tobacco, which In gels
dirt cheap that is all.
"The Mexican workman as long as
lie is punctually paid does not grumble
or kick. He asks himself no questions
as to what his employer makes. Strikes
and labor combinations ure unknown.
The Mexican government would snou
put an end to what we see almost
daily occurring In this country. It
never saves anything, so the accretion
of wealth does not trouble, him. and he
knows nothing about spring beds, por
ter house sleaks or pianos. As I have
said, he lives contentedly nnd uncon
cerned for the morrow as a bird, never
looking forward and never looking
backward, till the day comes when he
Is, cotlinless, wrapped hi his col ton
suit and serape and laid to rest."
dustrles from bringing the Guatema
lan silver dollars to this country the
government stamps a .mataeo (Ac
cent piece) across their faces. Thus
stumped they would be regarded by
American bankers as mutilated coin.
This Is done to force the Americans to
exchange with Guatemalan money
brokers who charge ten per cent, in
good money for the exchange.
"That brings the Guatemalan silver
dollar to 3"i cents In value. Then the
redemption is in American silver,
which they rate as gold."
NICARAGUA.
What Free Silver Has Done for That
Country Told by nn E President.
A little further south Is Nicaragua,
a republic of considerable importance,
whose former president. Dr. Cardenas,
arrived the other day in New York. He
wus asked what was the financial con
dition of his country.
"Very bad," he said. "Our sliver
money Is very much depreciated. The
peso has about 95 per cent, as much sil
ver In it as your standard silver dollar.
It Is worth in New York tram 42 to 48
cents. Twenty-llvo years ago our
money was at par. Since tllt-n It has
become more and more depreciated.
Prices ot food and other necessaries of
life have risen in proportion, going up
to more than twice their former figures.
But the wages of labor huve not gone
up lu proportion. They huve slowly
risen a little, but I hey are far less in
proportion to the present value ot
inohey than I hey should be If wo con
sider the great Increase lu prices."
"Why dues Nicaragua remain on a
silver basis?" asked the reporter.
'It is almost necessary now," he an
swered. "We pay agricultural and
other labor In silver, and we sell our
products lu gold."
"And your laborers get from 42 to 48
cents on the dollar for their work, while
their products are sold for gold, which
Is at a premium V"
"Yes," said he. "Gold is at a pre
mium, a dollar being worth $1.20. The
laborer Is injured, of course."
"I wish some of your free sllverltes."
said a Xlciunguan who was standing
by, "could see the effects of the sliver
standard in our country. The laborer
gels lu wages almost the same amount
he got twenty-live years ago. But he
has to pay more than twice as much
fur everything he buys. The employers
sell what lie produces for gold, and
pays him in debused silver. In other
words, say a. laborer gets a peso for
producing a certain thing that is worth
a. dollar. The peso that he gets in
wages is worth in purchasing power less
than IS cents. The emnloyers sell tne
result of his work for $1 In gold. The
difference between the workingman's
peso or dollar and the employer's dollar
is the difference between 4S cents and
$1.20. There you have the practical re
sult of free silver In a nutshell."
COSTA RICA.
GUATEMALA.
Kjperimce iil'a Boston oikinginan
in ii I'rce Silver Country.
Adjoining Mexico on the south is
Guatemala, another free silver coun
try. William K. Russell, of Boston,
who lately returned from there, gave
to a cm resp indent a very Interesting
account nf his experience.
Russel said he was a carpenter. On
May 10, ISM, he was working at his
trade in New Orleans. At that time
thu agents of the i'anzos Railroad,
then being constructed In Guatemala,
were In N'tw Orleans, engaging me
chanics and laborers lo work on the
road. They offered $7 per day for the
services of mechanics, and stated that
the cost ot living in Guatemala was
much lower than in the United States,
and that Guatemala was a free silver
country, with plenty ot money in cir
culation. Attracted by the wages of 7
per day mid the staements about the
low cost of living and the pletititude
of money. Russell shipped as a car
penter on May 10. lS!i",. He was under
the Impression that he .was going to n
land of milk and honey. After one
year's experience in the land of free
silver he found that his dreams had
been rudely and sadly dispelled.
"I will tell you the sort of cheap liv
ing we found In that free silver coun
try of Central America," said Russell,
"The mechanical squad of which 1 was
a member was compelled to pay $1.-5
for each scant meal of which It par
took. This amount had to he forked
over In advance of the gate of the din
ner tent. The shibboleth was 'no
money, no food," and those who were
unfortunate enough to be without cash
went hungry. The dinner consisted of
fat pork or barreled corned beef, bread,
Mexican beans and coffee, such a
meal as could be procured here for 5
or 10 rents. Canned goods were extra.
PArKR AND SILVER MONET.
"Now," continued Russell, "take
three meals a day, at $1.25 each, from
our dally pay of seven Guatemalan dol
lars, and you can realize what the
commencement wns In the lund of
milk nnd honey. Guatemala has for
many years been a rial hie exRn.ple f
what free sliver would Co for n coun
try. Taper money was put In circula
tion, with a silver reserve nnd on a
silver basis, but It is a well-known
fact that there are seven paper dollars
to every silver one In reserve. The,
paper dollars there are not worth the
paper they are printed on Tou cannot-
purchase food from the Guate
malan natives wl'h the paper cuiren-y.
They would rather give you something
to eat than to accept the siml backed
by the alleged silver reserve.
"In orde" to prevent the Americans
employed on railroads at.d In other In-'
t oiiMil tlclgndo K.ipluin Hie I'innu
rial Disordcf Resulting lioni I'rce
Silver.
The republic of Costa Itiea adjoins
Nicaragua, Ir has been making an ef
fort of late to extricate itself from the
evils of u debased currency, and a. de
cree restricting thu coinage of -Over
was lately published in The Times.
Concerning this the consul of Porta
Rica, in New York. Mr. Delgado, says:
"The condition of finances in Costa
Rica is similar to that of the other Cen
tral American republics ami worse than
that, of Mexico. Since the adoption of
the silver standard all the gold money
has left the country. Fractional cur
rency Is in silver, but aside from the
foreign silver all dollars yie paper, is
sued by the National l.aiftc. Exchange
has risen to a ruinous rate, and tne
merchant there never knows just what
he will have to pay on account of the
lluctuiiting values of silver."
"Nearly the whole of the foreign busi
ness of the country Is done on credit.
A merchant buys xr,,0i)0 worth of goods
in New York and at the time he has
not the faintest Idea what, he will have
to pay for them when the bills become
due.
"n account of this uncertainty the
11 minces ure always in a turmoil. At
present an American dollar is worth
$2..10 there; that is, a Costa Rica mer
chant is compelled to pay $l2,.ri00 of his
money fur $."..iU0 worth of American
goods. It is this inllatlon of values that
Is ruining the country.
".Moreover, the country is ' overrun
with foreign silver, and the differences
of values between that und our own
currency causes endless confusion and
distress. Naturally, then, the first step
is to retire from circulation the foreign
coin In Hie country, and that is what
is aimed at In this decree.
"Costa Rica today is facing the same
problems that this country must face
if it goes on a silver basis. It has the
results of a silver standard, a debased
currency, an abnormal Inllatlon of val
ues, nnd a ruinous rate of exchange.
President Iglesias will move slowly and
carefully in the matter, but as he Is an
able man and Is supported by the ablest
men In the nation, I have no doubt that
he will succeed in putting the country
once more on a sound financial footing."
SILVER IN COLOMBIA.
A Jlont Instructive Letter from the
l ulled States Minister at Uogotn.
Passing to the continent of South
America we came to an important sil
ver country in Columbia. Luther F.
McKluney, In a letter from Bogota in
June last, has given a Valuable decrip
tion of the effects of silver legislation
upon the people of Colombia. He
writes:
Twenty years ago. In 1870. gold and
silver were coined In the mints of Co
lombia, both being a legal tender for
all debts and at that time, owing to the
scarcity ot the white metal, sliver waB
at a premium over gold of about 3 per
cent. a
About ixso gold was at a premium,
because the Imports exceeded the ex
ports, and as the balance had to be
paid In gold it required a small prem
ium to get the gold for the purpose. Up
to 1SS5 the government continued to.
coin gold and silver, and at that time
gold was at a premium over silver of
about 20 per cent.
In 1S83 congress passed a law that
made paper money a legal tender for
all debts, the paper to be payable in
gold or silver at the option of the gov
ernment: this being an attempt to
make silver at a par with gold.
This was an impossibility, for at once
the gold all went out of the country,
and the government was on a silver
basis in spite of its efforts by legisla
tion to keep gold and silver at a pari
ty. From that time to this there has
been no gold in circulation lu Colombia.
The effect of this was to raise the
premium of gold from 20 per cent. In
18S5 to 100 per cent. In ISM.
At the present time (June 17) ex
change on New York Is 140, the price
of exchange depending wholly upon the
number of drafts upon the market and
the demand for them. As the coffee
crop is being shipped at this time and
the merchants for certain reasons nre
not Importing largely, the price of ex
change Is low. ,
In the department of l'nnnmn paper
money Is not used, silver being the only
medium of circulation, the result being
that silver in the other departments
has entirely gone out of circulation,
nnd paper is theAoily money used.
If one goes to market in Bogota and
offers silver for his dinner it is refused.
As exchange is lower in rnnama than
In other parts of the country speculat
ors buy nil the silver they can find at u
premium of from 5 to 10 per cent, and
send it to Panama und make a profit.
COST OF LIVING DOUBLED.
Now, to show the effect of .this upon
the peonle of Columbia, I will give cer
tain facts that are Well authenticated.
In 18s.i, when gold was at a preinlu.n
of 20 per cent., wages of workingnieii
on the plains of Bogota were 40 cents
a day, und in the hot country 00 cents
a day. At the present time wages are
60 and HO cents respectively, nn advance
of 50 per cent. All provisions have in
creased in cost about 200 per cent.
Meats ut that time were selling for from
2 to 15 cents per pound; at the present
time they sell for 4o and 50 cents.
House rents have Increased from 100
to 200 per cent. Small tenements, such
as poor people occupy, could be had in
iss; for $:! a month; now the same tene
ments bring $8. in 184 ami 1885 the
Protestant ministers lo Bogota occupied
it house for which lie paid $50 a month;
at he present time the suine hnusu
brings $200 a month.
Ill 1885 table board could be bad al the
best hotels for $1 u day; now it Is $2 u
day. and the proprietors all say there Is
much less money in the business thun
when they received $1. Wearing apparel
has not increased In price lu proportion
to provisions, buth this is because the
people are too poor to buy the gooda
they were in the habit of wearing be
fore, nnd the merchants have placed
upon the market the poorest quality of
gixids made in Europe for the market.
The reason the merchants give for not
buying more goods fn the United States
Is that the goods ure too good nnd the
people cannot afford to buy them.
Silver legislation In every country
where an effort has been made to make
a silver dollar equal to a, gold dollar
hns resulted In poverty lo the man who
labors.
have to pay In this same Brazilian cur
rency thre times as much as they
ever paid before for the cotton cloth
out of which they make their dresses
and clothes: for their flour, nil of
which Is Imported; for their jerked
beef, the greater part of which is
Imported: for their beans, of which
they consume large quantities, and
which ure also imported, and for nil
manufactured goods which they bring
from the United States und England.
The working man Is, therefore, the tlrst
and chief sufferer, and no one receives
any advantage.
"The government's obligations are all
payable In gold. Its revenues are re
ceived In paper mllrels. When the mll
rels fell to about one-third of its proper
value, the government was getting rev
enues on a basis of one-third, while it
was paying interest on a basis of three
thirds. The result was that the gov
ernment hart Immediately. In order to
equalize things, to increase the tariff,
the result of which has been that the
tariff along thu entire schedule Is
doubled, and In some cases is trebled
und quadrupled. In order to maintain
: the revenues on a basis which, ut the
I present rale of exchange, will enable
the government to meet the expenses
of administration and its gold interest
charges. The present percentage Is
high, and the Brazilian tariff Is alto
gether peculiar, because it has several
different classes of charges unknown
to us. The duties run all the way
from nominally live entry, let us say,
coal, to 100 per cent, on many clussis
of goods.
CHEAP Mit.NRY, CHEAP LABOR.
"The Brazilian laboring man, how
ever, does not beuin to suffer because
of tblti to the extent to which the Amer
ican laboring man will be likely to suf
fer if the repudiation of our gold money
and the acceptance of the silver stand
ard be brought about, because the Bra
zilian needs so much less to live tn,
and because t here are so very many
things which he can get at u light cost.
Fish from the rivers, which is dried,
is cheap and plentiful. Jerked beef,
even at advanced prices, is sttll cheap.
These and bnnaiins and other nntive
fruits, together with blackberries, con
stitute the chief rood of the Brazilian
laborer. His house rent costs him prac
tically nothing. He lives lu an abode
hut, with thatched roof, and the item
of rent does not average the ordinary
man $."0 or $fl0 a year In fact, that
would be very high. The consequence
is lhat lie' can bear the strain of low
wages and high prices much more
successfully and more contentedly than
the American laborer, because here all
the conditions of lift; are different, and
the standard of living is infinitely high
er." " s
THE EXPERIENCE OF BRAZIL.
Kvil KHecM of Departing from the
Sound Standard of Gold Values,
The largest and most Impnrtunl of the
republics of South America is Rrar.il,
whose recent financial experience has
been of a very instructive character. A
fair account of It Is given In a recent
Interview with William M. Ivlns, a New
York business man having varied deal
ings with South America, who has Just
returned from a business lilp to Brazil.
"It some of the crazy men In I he
western part of our country," said Mr.
ivlns, "hud to do business in Brazil
under conditions such as they are pre
paring for the I'nited States, they
wi uid soon have the most marked
Illustration of the fact that a depre
ciated currency reduces all business to
pure speculation. Before the revolu
tion of ISi9 Brazil wus on a gold basis,
with a small Issue of national paper
currency. The English pound sterling
as made full legal tender, with such
an iiiMillicleiicy of paper money that
exchange was above par, which Is an
Interesting phenomenon In financial
history. The par value, as lixed 'nv
law. of the Brazilian milrels is 27d
sterling. Nevertheless, when I wus ill
Brazil In 189 1 was most deeply In
terested in the fact that the Bruziliun
paper money was selling nt 29d., or 2.1.
belter thn par.
"After thut came the revolution,
which, beyond a possible doubt, has
been the greatest benefit to the coun
try, because, under the Repub'lcan
regime, it Is pixg: easing, I think, more,
rapidly than any other country in the
wi.rld, nnd certainly more than it
would have been possible under the old
Imperial system. However, when they
begun to make their constitutions and
to legislate hastily, the Brazilian na
tional commerce was dominated by
men whe were pervaded with the som?
sort, of financial Ideas ns our wild men
of the west. They went Into a most
elaborate national banking system and
got down to a paper currency as soon
ns they possibly could. The result was
lhat Brazilian exchange declined from
point to point until It has been as law
as 8Vad., or. say, about one-third of
tar. whereas only seven years ago
it wan at par or better. Exchange to
day fluctuates between ftHd. and 10d.
Every man who buys or sells a dollar's
wotth of goods does it subject to the
rit'k of this fluctuation In exchange.
PRICES UP,, WAG E8 DOWN.
"As a conseq'uence, there Is no stabil
ity. Prices have gone up, as exchange
has gone down. The prices on com
modities of prime necessity are even
more than three times ns high as they
were lu 18X8 and 1889. On the other
hand, labor has not risen In any such
proportion. Labor, 1 believe, through
out Brazil and I am speaking now of
experience in all of the coast cities of
the Amazon Valley Is not worth much
more than half as much again In Bra
zilian currency as It was five or six
years ago, and in some places It ranges
from halt as much to as much again,
but generally that Is due to peculiar
conditions. On the other' hand, they
THE FINANCES OF CHILI.
A Vjry Instructive Chapter on Hip Ue
Intiou of ;old, Silver nnd Paper. '
The experience of Chili in bimetal
lism nnd Inconvertible pnper and tin
painful steps required to return to th
gold standard, are so very Insl ructlvt.
ns lo be worthy of considerable stmce.
This history is told in u recent report
from the United States minister. He
shows that the siune'caiise will produce
the same results now as in former
generations.
The law of ISM establish"! bimetall
ism In Chill on .1 ratio of ltl.39 to I.
It will be observed that this was dis
tinctly unfavorable to silver as u
money imt.il, tor the I'nited Suites
ratio of 15.98 to I was too high, und
the French ratlf was 15.5 to 1. The
Chllllan ratio had the effect, which ap
pears to have been its purpose, of
sending silver out of the country nnd
nnd bringing gold in so that the coun
try used silver in the settlement .t Its
International balances nnd circulated
gold coin. Afttr 1S71 silver fell so fur
lhat the ratio of ltf.:i9 was too low,
and in his report for 187 the d rector
of the Chillian mint said: "As a re
sult of the commercial ratio of I to
17.023 Chillian gold, which before was
favored, has become undervalued lu
commercial transactions by about 7'j
per cent. As 1 have before stated, we
have not hud to wait for the result.
The abundance of this gold coin has
been followed by its almost entire dis
appearance from our market." Prior to
the decline of sliver, silver coins did
not circulate; subsequent to that gold
coins did not circulate; both result.
are in absolute accord with the ex
perience under like conditions of the
United States. England. France, Ger
many, and other nations, and both are
quite Inexplicable according to the
philosophy of our free coinage men.
PAT' EU 1 NFLATION.
The bunking law of Chill wns very
lax 20 years ago, but until the expulsion
of gold the bank note circulation was
not large. But when gold Went out of
use the banknote circulation Increased
rapidly, because the people would not
hundle silver In considerable quanti
ties. Here is a perfect duplicate of our
experience in the early part of this
century. What we did for many years
prior to 1s:si the Chilians did for sev
eral years after 1ST I. Chili had to re
duce the fineness of minor silver, us we
did in I sr.:: und France did a dozen
years later, in. order to keep small
change in circulation. After silver had
displaced gold because it was cheaper,
nnd been displaced In turn by iuer
because it wus lighter, the war with
Peru and Bolivia, occurred and led to
very huge Increases of government and
bunk paper, and these issues were In
convertible. The paper presently de
clined, and for several years before
resumption It was very low and going
lower. The original gold peso was worth
45 pence, sterling: the paper peso was
worth less than half of that when the
legislation of 1892 and 1S9.1 was enacted,
designed to re-establish specie pay
ments on the basis of a peso of 24 pence.
This legislation was conditional and
Impracticable, and the peso declined
till it was worth but HVj pence. Winn,
the resumption law of 1S9S was passed
the government lind to take notice of
the fact that engagements had been
entered Into which depended upon the
promise nf the government to redeem
at 24 pence, but lo do that when the
peso was worth but half that amount
was felt to be Imposing too heavy a
burden on the stae, so thnt a comprom
ise was effected upon the basis of a peso
of 18 pence. The latest and the success
ful resumption legislation provided for
the redemption of the banknotes In gold
also; this had not been provided for in
the earliest acts und was a leading
reason for their ill puecess. On June 1.
1S95, the govern men t und bank puper
became redeemable In gold coins on the
basis of a, peso of IS pence.
RKSUMPTION ACCOMPLISHED.
A Rood part of the gold for the purpose-
of resumption was procured by
Chili, as It was by the United States,
on bonds sold In Europe. But there
vver two striking differences between
Chilian resumption and ours. They
destroyed the redeemed notes. ' We re
issued the notes, nnd we have redeemed
them over and over again, lining for
that purpose the gild revenues ot the
government, and when they ceased gold
procured by bonds. When the Chilians
redeemed a note they made sure thut it
would not come back again for repay
ment. They wished for no "endless
chain." We waited until the paper
money hnd appreciated Very much be
fore we promised to resume; then we
Mxeil a date of resumption four years
aheutl, and that encouraged the appre
ciation ot the notes, so that they were
practically ut par before the date of
resumption arrived. The Chilians voted
February 11 to resume June 1. the peso
beiri ut that time very greatly de
preciated, und they icdiiceil their coin
not f the level of the paper but toward
it. l.:y the law of 1851 thi condor ot
1 11.72! Reams of lino gold was thu equiv
alent of ten pesos: by the law of 1895
the condor of 10.9S grams of flno gold
Is the equivalent of 20 pesos. The coined
silver yeso has been reduced from 25
to 20 grams, ils linen ess has been re
duced from ,9(K) to .s:i5, and it Is a legal
tender for not more than 50 pesos; the
fineness of the r;old coins has been In
creased to the British standard, and the
pound sterling is a legal tender for
1:1 l-:5 poses.
Minister Slrobel gives some very in
teresting slalistlcs of the course of
vvagesj durini; the silver period. The
peso Is supposed to be worth 45 pence,
but in 1857 It was worth 20 pense und 111
1s!'5 it was worth from l:t pence to 17
pence.. . During this period, while the
money of the country was depreciating,
ami when, therefore. Its purchasing
power was growing less, wages In
cieitssiMl, but not nearly at the rate at
which the peso decreased. In 1875, for
example, some mechanics) received
from :! to 4'i pesos a day; a carpenter
received from H t I pesos; a. laborer,
from 1 'i to 1 pesos. In 195 the. me
chanic who hud received from 'i to 4'.j
pesos received from 44 to tit-,, while
the carpenter received from 4 lo 5. and
the l:i borer from 2V. to 3. lint the high
er wuu.es were not worth nearly so
much to recipients as the lower wages
had been: fur while In 1857 the peso was
worth nearly its full value, in 189S 4
pesos were equivalent to 1.79, nnd fi'i
pesos were Worth only 2.4tl pesos of full
value. The laborer, instead of being
able to buy the necessaries of life to the
vnluo) fif nearly 1 'j pesos with n day's
wages in I8;t5, procured goods to the
value of only about .85 pesos, although
In the first Instance his day's wages wus
Ua 3osos, and in I he latter 2'4 pesos.
W hen lie received li pesos his dally
wage purchased fur him food and othtr
con.iiKiiHtlos'of the value of about 1.70
pesos; in 1895. when his day's wage was
:: pesos, it littrcluiHcil only 1.1!! pesos'
worth of goods.
Kreo slher ctdna.w was without any
supporters In Chili, and the only op
position to the resumption legislation
came from those who urged thut the
country waif till the panel peso had
appreciated to par before undertaking
it. As the paper peso was depreciat
ing this party dlil not prove very powerful.
ARGENTINE FINANCE.
An fvvitiiii!e of the l't ils of Silver aud
l.nvi'riniicnt Tint .Honey.
The experience of the Argentine Re
public illustrates the results of more
different kinds of ilnancial falllcles
than that of any other country ut the
present time. Some yeu.s ago the na
tion p.flooteil one of the Populist ideas
of making loans on "land" that Is, on
farm mortgages. These were Issued
through national banks and guaranteed
by several provinces; but of course they
were not paid: Interest could be paid
any more paper, and specie pay
ments were suspended In 185 und have
been Fi'speiidod over since. The United
States (onsul ut Uuenns Ayres writes:
"'The condition of the paper currency
could hardly be more unsatisfactory,
of course it Is guaranteed by tin bonds
of the different provinces, but in thler
presi nt bankrupt condition the guar
anty slgnilies nothing, and Hie fait
thai the national government has as
sured the public that it will pro (pit
the noteholders adds but Very little to
the val'ie of the Hides. At the current
quotations of gi ld on the Buenos Ayres
exchange the notes are worth about 28
cents to the dollar, or, in other words.
It takes about t;o In bunk notes to make
tI00 in gold. Being, however, the only
curienry in the country, it is the gen
eral medium of exchange and It passes
from hand to hand in Die business
operations of the day."
The amount of "cedulos" outstanding.
Issued through the National Hypothe
cary Ttank. Is given at about tlOO.Oi'O.Ota,
and the depreciation of property on
which they were issued is lifty per
cent. The government which guaran
teed the intere.-t. Issued "certificates"
in payment. Of the Provincial Hypoth
ecary bank of Buncos Ayres. Mr.
Baker writes: "It is sufficient to say
that the institution Is thoroughly and
irrevocably bankrupt, following the for
tunes of the province. Its outstanding
liabilities, in the Issue of crdulas,
amount to $222.:w,000. and the mort
gages riven us security are not sup
posed to be worth 30 cents to the dol
lar. The cedillas cannot be sold for 20
cents paper money to the dollar."
Counting the various kinds of na
tional Indebtedness, including' the cedu
las and bnnk currency. It foots up about
7S 1.000.000. "With such a burden of
debt on which It cannot pay Interest,"
writes Mr. Baker, "uml such a. burden
of bank notes which It cunnot redeem
it la not surprising thut the finances of
the nation are in an unsatisfactory con
dition. Of course, since its default, the
nation Is entirely without credit in Iln
ancial centres."
How all this affects the people Is told
by an American recently returned from
Buenos Ayres. William 13. . Peck. H
says: "The paper money Issued by this
government are promise to pay some
time . in 1855 tha cruxo forsoso (legal
tender) bill was passed, s impending
gfiold payment for three years; this hart
been extended from, time to time, and
now It Is quite likely a conversion law
w 111 be passea before lonr. on the basis
of $250 paper for 100 gold. Before the
passage of the curio forzoso bill, a
skilled workman received $40 a month.
Today the same workman Is getting
$60 paper, an advance of 50 per cent,
nominally, and yet the dollar has only
a purchasing power of one-third of
what it had before. The effect on the la
borer therefore Is this: that he Is get
ting $C0 paper whereas If he was getting
an equivalent wage he would today be
getting $120.
"In the Argentine Republic gold con
tracts can be made, which Is, of course,
a great blessing to the merchants, as
it enables them to make a profit on
many of their Importations. AVhat
lias killed business in the Argentine
and prevented many merchants, with
ample capital, from making any pro
fit during the past few years, has been
tne violent fluctuations in the value of
the paper dollar."
OTHKrt EXAMPLES.
The finances of Paraguay are natur
ally much affected by those of Its mora
powerful neighbor. The nominal stand
ard is the silver peso; the actual cur
rency depreciated paper. Peru has had
a very hard experince. The United
States Mint report says: "For a long
time the country had an Inconvertible
paper money, but since the war tho
paper has become almost worthless,
and in consequence only hard soes (a
sliver coin equal to the five-franc piece)
are now in circ'ulatjon, valued accord
ing lo the price of silver." Venezuela
has passed through the usual bimetal
lic experience, but by limiting the
coinage of silver has gradually brought
Us c urrency to the gold standard and
now has definitely abandoned silver en
tirely as full legal-tender money, and
thus has greatly promoted the commer
cial development that Is bringing It
into the front rank of the South Amer
ican republics.
Thus It will be seen that the most ad
vanced South American nations have
already learned by experience the evils
ot the system which is now recom
mended to the United States, while tha
others are still struggling with it Jn
every case It Is found that the reten
tion of the old Spanish dollar or a simi
lar sliver coin as a standard ot value
is both an accompaniment of poverty
nnd a cause of poverty, especially op
pressing the laboring classes, and that
as nations advance they throw off this
burden and adopt the Improvements of
modern civilization, of which the uni
versal standard nt value is the type.
Philadelphia Times.
ADVAY'S
PILLS,
Always Reliable,
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IRE GREAT LIVER AND STOMACH EEHEDY
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Posscsa properties the most extraor
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stimulate to healthy action the vari
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RADWAY'S PILLS
Have long been acknowledged as
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SICK HEADACHE,
FEMALE COMPLAINTS,
INDIGESTION,
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CONSTIPATION,
DYSPEPSIA
AMD
All Disorders of the Liver.
I'Tull printed directions in each bos: 15
reatssl ox. Si. id by ull Urugtfigts or mailed
on rfoeitit of price.
rt DWAY &ct., re Warren Street, N. Y.
TO tiik PL fiLIC: Ho mire and ak for
HAD AY'Haud feu that the asm "RAD
WAY" is on what yon buy.
OOaipIexicn Preserved
DR. HEBRA'S
VIOLA CREAM
RemoTca Freckle), Pimples.
Livor . Molat, Olachheaii;
Biinourn Him ian, nnu re.
Btorcs tre emu 10 ns origi
ml frohnesH. DroduciHC a
cieur aud bculiny com-j(
T'lexinn. ruperiui; luauiueta
preiiarations and peneetly hamlets. At all
(jrurfSUU,ormuik'dior5(ku, cud lot Circular.
VIOLA 8KIM SOAP Pr tacenpifM
BVI& p iniilcK hup, n&u)cd ft tha toilet, lod wtttKWt
rial for tin numrj. AMolutrlr ui tal tilliilri BM
nitftl. At dm,,)'!,. Price 25 Centa.
fi. C. BITTIMF.R A CO.. Toledo, X
For Bale by MATTHEWS BR03. and
JOHN II. PHELPS. Scranton. P.
Cnocnuo ar thc HiiHtrr Mimem Avmownre
mHEADACHEM
J VT i3 . INtiAt.in will core yon. A
w X efT A. ,,n,.,rfi,l In Win , n fTnrr.
ST '-T-7S?frointolil,SoreTliroBl.
Inflnrn7a, H roncallu.
orll V FF.VEK. inf
immrAUitrrrlUt. An IB1enl
ri'mfMlv. ennvpntpnt til oarr7
In Wkt.rialT to en flit Inillratiim of colu.
t'nntlntted l'e l'ireile PmuiHl Cure.
PtIfftCMi,nninrnte'd'rm'Wiyretuniie(l. Prle
S eta. Trial fri'i at UrnanMf. KKlJtrod mail,
SUceuUk E. D. CUSEilK, Mir., IhrM Ltcti, Mick, 0. 1. A,
CttflSlMAlf'S
ftpajTUfll 1"h-' "i"" n,l aftt Tumnly nf
ll'trl 1 nUb alukin ii-pii.ci ifii, Itrb.Satt
RhpiimM S.irM. Hii.-na, Cum. VoitderfVil rem
MTfnrril.Kh. Prlce.rta.t Drag-pal u
".ir bjr Ri;tll tirci'M'l. AiMrpMfiraUiTi. Drt 1 "
For sale by MATTHEWS BROS, and
JOHN II. FHELPS, Bcranton. P.
tMl rralpkMrr Fiutta Itlaraead TlmeaV
rENNYROYAL PILLS
VtN. airt ulMftiM rWisUa. L0t Mt
DruH.t fbr i,"ffi Bttfium ua-(
..m,l Rr.tiui in Kaa UM (W(el Drill K
toi. with blue rtr-hon. Tttka
k. kg fust dan'itrotiM mbtttfi
mom ind iw.it ittvn. At brugriitl. r tnl
in MiTpi ff t'rtknlr. tfiaMiUI maJ
Wrllef for Ladle inlrtfr, ? return
Mull. 1M' T , tun lili. Xnm I pr.
f 3 tv'--
mmm
'dr nrer fall
lerlatr Lkv't
aft u.diurwhll-alr9s
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Tfcfwi tin C'npaelr
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IncvnTenienpn,
ll.obtrli AJ
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