New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-06-15


establishment of a New-York banking house with
branches in every large South American port would
greatly facilitate the extension of trade. II would
furnish New-lor exchange as substitute for
London exchange, and that would be a great gain
II would also provide all effective method OF cA-
tending longer credits to customers IN South
America, who obtain nine months or year from
English or German traders and cannot get more
than ninety days from American exporters This
Is the same point on which merchants have laid
stress in their talks with me at Para Rio, Monte
vldeo, BucnOs Ayres and Valparaiso Now tax
ranging from l-2 to 2 per cent is paid TO the
London bankers on everything exported TO or i'm
ported from the United States. series Of
American banking houses in the important capitals
and ports would take this profit and give back
something in exchange for it. 1t would be ready
TO cash drafts against merchandise going in either
direction, and would practically extend credit 10
nine or twelve months. This is one of the most
important questions connected with the develop
ment Of American trade with these countries
SO long as English French and German merchants
offer longer credits and easier terms in the settle
ment Of accounts than American manufacturers
native traders will prefer to deal with them
Longer credits for American goods can only he
provided through the agency of American bank
ing.
A second recommendation made by Mr. Renberg
was that silver coin OF hXed Value should lie
introduced, with the sanction OF the nlted States
and various South American Governments. lie
referred to the fact that business on the West
Coast is now largely conducted on the silver basis
as strong argument in favor of such action.
The Gillian peso and the Peruvian sol are equal
in intrinsic value. and no distinction is made be-
tween them anywhere from Valparaiso 10 Panama.
In Ecuador both coins pass freely IN circulation,
since that country. while having different none
tary unit. is the silver basis, It's paper money
being rcdeemabc III silver. Bolivia and Colombia
also have silver COINS albeit OF a debaScd value
in comparison with the Peruvian and Gillian
soleS. In llr. Renbergs judgment the proposed
establishment Of rev com which VIII nave
fixed value in III the West Coast countries and
also in Mexico and the United States is pIac-
ticable. and will inevitably facilitate exchanges
among those countries Ills own experience in
South American trade justified him. he thought,
IN predicting that great results would follow
the Introduction Of Slcn coin II was policy
which could hardly fail 10 promote the interests
OF American trade.
Three Of the most important countries in Span
ish-Amerca have an incouvertbe paper currency
which drives gold and silver out OF circulation.
These ore Brazil. Argentina and Chilli. In Bra
zl where the milreis Of 900 refs is re monetary
unit, there IS nomlnallV a single gold standard
Neither -old nor silver is ever seen there, and
the paper money while irrcdecmabe, is pIltected
against depreciation by the favorable conditions
Of foreign exchange. In the Argentine Confedera-
ton reckless imitation of the currency has reduced
the value OF the paper dollar to 46 cents. Hard
money Is never used in commercial transactions
there although the double standard is technically
in force and both gold and silver are coined at
paper currency, and neither gold nor silver is
used in ordinary business, except IN Peruvian
trade. There is a double standard both gold
and silver being unlimited c-2l-tcnder. In these
three countries paper mOneV alone Is in actual
use. with debased copper ami nickel coinage for
small chan-c. Uruguay enjoys the distinction
Of being practically on the coin basis, It's paper
issues heinr redccmable in gold. So far from
being welded 10 silver money. il Is strongly in
luenced by is European trade relations II favor
of gold a> - single standard In the remaining
countries OF South and Central America the de-
monetZatlon of LoI j. complete. In BOLIVIA.
Peru, Ecuador. colombia, Venezuela, Central
America ami Mexico silver Is the single standard
In Bolivia 'nc unit i the boliviano 81 yer coin
nominally equal 20 the Gillian peso and the Pc
ruvian sol. but not containing TIE same number
Of grains Of equal tneneSS. The Chluan peso Is
coined expressly for the West Coast trade. but Is
not in general circulation between the Straits
and africa, since il Is displaced by the cheaper pa
per money. This coin = equal 10 the PERUVIAN SOL
having a weight of 3s5N grains In Ecuador There
is a paper currency redeemable IN silver sucres
In Colombia there is a silver peso; worth In
trin,icay little les, than me milan AN peso Sio or
bian standard dollars are thrown out IN Chih
and Peru rs slightly dehsed. when silver com
is counted. Ia Ncnezuel9 VINCE the SILVER
dollar of five hoivars j. the standard, both the
Peruvian sol and the Gillian peso are heavily dis
counted In Mexico all these South American
coins are worth less than the silver dollar OF
Ii is not practicable therefore, TO introduce a
common lccaltcndcr silver coin OF standard Welght
in Brazil. Argentina and Chill so long as ere
dccmablc issues Of paper money are IN clrcuiau0h'
small coin can only be brought into use in 10
livia Peru. Ecuador Colombia, Venezuela. Cen
tr,l Amcrica and Mexico and even in those coun-
10 be re7dustcd before coin of uniform value
can be brought into general circulation by inter
r,tioroI acrprmpnt While the advantage of haN-
ING such a coin with fixed value in 50 many
countries will be very great. serious difficulties
will hAs, 10 be overcome before its weight ana
ouality can be determined by concerted actl)n' ana
proviSiOn made for lis Introduction by the retire
ment OF various national coins Of inferior Valle
/ -nder what conditions the United States with
;,s hi meta HE currency. can enter into "oln-
ace agreement with countries under the sway OF |
silver recommendation il would he premature tor
mo to consider here when have no knowledge
Of the work accomplished by the Coinage oom-
mittre of the international Congress Mr. KEN
herg's general view of the question Is, however,
urdoubtcdlv correct If il be practicable for the
| -nitcd states. Mexico Peru Chilli AND BolVla,
which are the chief Silver-producng S,atrs; 10
oorce upon a common standard coin: American
trade will be largely benefited. With such
coin circulating in these countries and win Amer
icon hanl,ing-houses established in the principal
nor,s Of Spanish America New-Nork exchange
I.onld be substituted for London exchange in com,
mcrcial transactions. American commerce would