The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1874-02-05
SOUTH AMERICA.

The Peruvian Government Victorious
Over tho Bank Spectators and Mo-
nOpOiists-MOneyed Corporations More
Closely Identified with the State-Com-
merce, Crops and Customs-Revenue-
American Exploration in Bolivia
Telegraph Extension.
LIMA, Jan. S, 1874.
The struggle between the governments and the
banks Is over, and the administration policy is
crowned with success. Some account was given
in my last correspondence OF the decree of the
18th oil December. ordering the banks Of issue to
purchase seventy per cent OF their paid up capital
IN government paper, to be held as guarantee to
the public, and to place upon one side the remain
ing thirty per cent in coin or bullion for the pur-
pose OF redeeming their notes when it might
become necessary. loud flourish was
made by the President with respect to
the 'paternal care" Of the Executive towards pro-
tectng the interests Of the people, but 1t was easy
to penetrate the cause Of action the simple pro-
vision Of funds for the national Treasury. At first
the banks proposed making a stand against the
measure; they not having been consulted regard
ing its expedency, nor even notified respecting
its appearance the whole matter assumed so
much of the character of forced loan that the
opposition was general. But when 1t came to be
considered that II any bank refused to acqulesce
in the views OF the President its notes would be
refused by all government offices, and the conse-
quence would probably be run, prudence took
the place OF Indignation, and the Institutions cali
ing together their shareholders, resolved to accept
the situation Thus the vaults OF the eXchequer
VIII be supplied with nearly
SIX MILLIONS OF SOLES,
a sum sufficient to pay or the more pressing in
ternal deots and to relieve the Minister OF finance
from anxiety Tor a lew months to come. 1t GER
tainly appears somewhat arbitrary, never theless,
To compel the banks 10 buy government Obligations
at nlIety-two per cent when their value IN the
n Ylnr
cent only one excellent result Will follow, the
public works will receive new impetus and the
pensioners on the State, WIDOWS orphans and re-
tired list, will be paid the long arrears due them.
In the meantime the banks are supposed TO have
received additional rength from their invest
ment in government securities. The question has
been asked and not replied to, Who furnishes guar
antee TO the government
COMMERCE. AND THE CROPS.
Trade is at standstl. The cotton crops in the
North have failed, and the report from the sugar
estates is not nattering. The President Is ap-
parently fearful OF enforcing the law passed by
Congress known as the Estd,co, or limiting the
exploration OF nitrate OF soda. An illegal outward
duty OF fifteen cents per quintal has been in opera
ton since september last IN spite OF the protests
and opposition made to it. owing to the enormous
amounts OF the article shipped to Europe in order
to escape the effects OF the EStdncO, the price OF
nitrate abroad has fallen to sucn rldiculously low
figure that exporters have suffered heavy losses.
Ii is probable that one OF the first steps taken by
Congress IN July next VIII be the repeal of the law.
AMERICAN ENTERPRISE IN BOLIVIA.
Further favorable intelligence has been received
from Colonel Churchs Undertaking In BOLIVIA.
Colonel Markbrelt, The managing agent in La Paz,
was III receipt OF communication from the En-
gineer-ln- Chef, IN which the tact stated that
a route had been discovered around the falls
OF the Madeira River, lessening the length OF tine
railway to be constructed by fifty odd miles. The
government still manifested its warm interest in
the undertaking, the President especially evinc-
ing his determination to protect and further the
scheme with all the means at his command. Moth
ing more was known regarding Mr.. Piper, whose
whereabouts have been q matter OF speculation
for some time past. Neither mad the government
OF Bolivia replied dnally TO the request made by the
courageous vile oil Mr.. Piper, OF which an account
has been already given to the HERALD. 1t may be
that tle report published from Rio Janeiro to
the eject that the story OF Pipers death at the
hands OF the Indians was unfounded is erroneous.
A CONCESSION
made to a Spanish gentleman by Congress for
exclusive monopoly in all Geographic land and
marine lines to be laid within the Jurisdiction OF
the Re public. This VIII clash, IN a measure, with
the project OF the Telegraph Works Company or
London to lay cable rom Pisco in Peru. to Cal
dera, IN Chile, passing through Bolivian waters;
but possibly some arrangement may be arrived at.