New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-06-09
ALONG A RAlNLESS COAST
AMERICAN TRADE WITH ftkI'
pEc,pEXCE or C>LLAO - IMPoVEFlS" MN
c,rsrp BY THE wAR-now SILVER RE
SUMPTION WAS ACCoNPLIsnED-EF'
FE~Ts OF THE GRACE CONTRACT.
rRou srArr connE-rovDrvr oF THF I''"VN''

FITS OF TIL + OK VI T. ''s'A ~
yRou srArr CORRESPONDENT % TIRE IHR'>'
Callao Feb 2s.-ThiS was once the c'I'' VI NV
,radc Of the Yves, Coast The Pacific NaVIGali'h
co,on,r, made !, tbc HEADQUARTERS Of their hfct
Of steamers. establishing here extensive I'P"I
shor. fourdrics and depotS Of supplies. ana en-
allowing a force of zoo English mechanics LOT Whom
bonsrs a hospital and even a theatre were Jun"
II i an unerring sign Of the commeTclaI oeo"-
dence OF Callao that the company are trahsiciIlnS
,beir machine shops from the Peruvian 10 uo
,bilian coast Mich of the mechanism "oIh
which was formerly done here Tor tha' hcc' -
NOW providel for AZ Valparaiso. inns 'aIu"o"
nroncr.v is practically in the marker awaiting
nu-choscr and the stan OF workmeh mas oceh
cro.,lv reduced The transfer OF the remnant
of the force Of engineers and mechanics 10 VAL
nayaiso is only question OF time Inc CONNER {
ard nonulation Of the town haV" steaGlN de'
o,,aoi sirco the collapse Of the Guano business
o,oo tho hay was constantly filled with shipping
,ror foreign ports Now there are few vessels
orriving directly from European. Australian ana
rnited States ports. The English. Chllan ana
German steamers engaged in thc coastine trade
corne and CO. touching here as they do al other
noints between Valparaiso and Panama, and sup
plying the requirements of Peruvian commerce
( mo Of the second-ratc steamers ply between
VALPARAISO anu Ndidp, but tHiS II NANNY i'i wv
benefit of the intermediate nitrate ports Callao
has ceased to he a terminal point of the first I'M
portancc for European commerce. It's population
was once 10000: il can now hardly exceed $4,000.
There are no signs of hustle and activity in its
streets II looks like a town which has seen its
hest days and is content with "reminiscences of It's
former commercial Importance.
Ones first impressions of Callao are deceptive.
There is an exceptionally good harbor for this
coast and il has been decpcncd and improved by
a French company. There are molcs where steam
ers and sailing vessels can receive cargocs there IS
a LARGE floating dock there is a Sca-wall nearly
n mile long of substantial construction: there are
steam cranes for loading and discharSinC carSoes
and railway tracks leading nearly 10 the ends OF
the molcs and there is anchorage ground for the
largest ships Facilities are provided for handling
an immense commerce. There are all Tie me
charical appliances and engineering works re-
ouircd for making Calao a metropolis, but bust.
ress is lacking. On this rainlcss coast one con-
stantly sees dry rlver-bcds where there are fine
channels for running water and sharp curves and
rugged gorges in the coast mountains offering Il
lronise Of bold, effective scenery. Only one thing
is wanting-watcr and as Mr.. Warner
discovered when he saw the arms of the Bay Of
Fundy al low tide. water adds immensely 10 the
general appearance Of a river Here al Callao
are the channels followed out and scientifically
improved for floating a great commerce; but
there seems 10 be TO business. The town is
stagnant All its commercial and industrial in
,erests are depressed There have been signs OF
improvement during the last two years but the
revival Of its fortunes has not yet set In with
inviroratinr force The transition stage from
the disasters of war TO the material prosperity OF
pacific progress has been indefinitely prolonged.
The chief cause for the commercial decadcnce
Of Calao is the exhaustion Of the resources of tho
country which produced by the war with
Chilli. Peru. at the close Of the disastrous cam
raign. completely crushed. It's seaboard had
been ravaged; many Of its towns were heaps Of
charrcd ruins: and its capital was only saved
from destruction by the energy of the foreign
residents The Government was bankrupt For
years it had been dependent upon the guano beds
for revenues and now these sources of wealth
had passed out of its possession II was COM
PEELED by It's necessities to continue the issue Of
irredeemabe fiat currency, which was already
worth only fraction of its face value. II went
on initiating the currency until there a volume
variously estimated from SsOOO0.OO0 to $780,
900 600. and an actual value Of a few cents on
the dollar With such medium Of exchange
business operations could not be extended. Ii
was not until the currency became worthless and
was cast aside with one consent by the people in
the coast towns that there was any real improve
mcnt in the situation Momentarily. the repudia-
tion Of the currency involved great distress in
the interior. where the natives had no money
with which 10 buy food but the substitution Of
silver for paper was rapidly effected and from
that time there has been partial restoration Of
business confidence. The industrial interests of
the country have not, however. recovered from
the paralysis brought on during the The
unfinished railway system has been one Of the
chief obstacles to material progress. Lack Of
capital available for new enterprises has been
another hindrance. Peru had stopped paying
The interest on its public debt. and thereby had
fatally Impaired its credit. It's most urgent need
was foreign capital, but its borrowing powers
had completely collapsed
EXPORT DUTIES AD PORT EXACuONS.
Aside from this general cause Of commercial
depression there are special reasons assigned for
che stagnatOn Of business at CallaO one is The
irrational policy Of the Government in burden
ing the trade of the country with heavy cX-
port duties at time when it was suicrrg
from internal exhaustion and needed to swell
the sales Of its products abroad. There
staples in the production Of which Peru
cXcellcd. IL the free expectation OF these sta pies
had been allowed, gold would have returned TO
the country and business would inevitably have
improved but by levying duties upon these
products the Government has crippled the most
important industries, and prevented their normal
development. There is, moreover. general COM
plant among shippers here against the French
company which practically controls the com
merce Of the port. By virtue Of concessions
wrung from the Government when il was in
financial straits this syndicate Of foreigners has
secured a monopoly Of the harbor privileges and
Improvements Foreign shipping is at its mercy;
and although II has not been guilty Of any
serious eAactionS, intense prejudice has been
excited against il. Shippers naturally avoid
port which is dominated by foreign monopoly.
Possibly II is I'm consenncnce Of tins fnrcicn cnntr