New-York tribune., 1890-04-13
ryRox A STAFF CORRESPONDENT OF THE TRIBUSE''
ELECTIONS.


orusbcd nrostratc and dcspairing, it has been
restored by the efforts of one to life and hope
A. tho close Of the disastrous campaign with Chlll
its towns were in ruins, its railways were we'll
nigh destroyed and its industries were paralyzeu
The country was rackcd with political fehns anu
rent with civil AS interest had not Dee" p'i'
an tho national debt since 1876, there was an
,,,or colIonsc of nublic credit. The currency had
hccn inflated until it reached Sl00,OoO,pOo, de-
| prcciotcd to = cents on the dollar and virtually
repudiatcd Each new Government create" ~
revolution or military cabal was powerless 10 ~
store financial stability. Railways were ai'i
trarily seized in defiance Of vested rights l"oic
,,os not n fnancier. either in Europe or IN
| America so crcdulous as to end money " i''"
on any terms. Without the aid of large masses
of foreign capital the Industries OF the country
se,mcI destined TO languish for an indehhi'e
| ;I Irrlor dcnlorablc conditions Of national
horl,rrntcv and commercial depression, the future
-, Form secmed absolutely hopeless. But there
,,os ono man who did not cease TO hope, even
whcn cvery one else dcspaircd. For hvc years ne
| has hcen swayed by the honorable amnltioh oi
| ,oscuinc the country from its caamltous con-
dition nv n mastcr-strokc Of finance ana dpo"a'S'
RadIed many times by the hcrce f'sch'ino"
| created by the war between thih an" i''"' anu
constantly embarrassed by counter il'I'Su'' ''"'
t., ,rour.s of inanccrs which had support from
rolitical factions here he pcrscvcred III MS u"u'i
takinc with incxhaustiblc reserves OF pa'c"cc "n"
| COURAGE until success crowned his cHor's' O','''
| has removed the last international ops'ao" 'S
| CONFESSIONS which involve settlement Vi "a,
| claims arising from the seizure oi n''i" c
dcnos,ts previously mortgagcd for the beneft
| -, ,h poruvian bondholdcrs The entire ioielSh
do,, amounting in interest and prlhclpA u
/ hear ID II
| ,hicb has been sanctioned by the Legislative
and NOW has the supreme force OF
,,i,o 1o,v The bondhollcrs for this discharge
:, ;dob,e,ness have received ten state ran
| ,.s with the privilege of operating 'he'h '"i
.ix,,-six years and the obligation To eN"hu ai'''
| 2o2 kilomctcrs during the next SIN Ne'iS' i.''
| Loy. also obtained control Of important Hl'"'"S
nron.r,ies and a monopoly of the guaho ousi"'''
- thili and Peru for four years, ana a l'r-' S''''
80 80 ,,'a ,,,rkin,, Of the best beds for longer
ar;,, Thcv are armed, moreover win many
| n,hcr concessions and privileges, "hl'" "'' 'N
| o,.d IN Weld them an immediate ll'o"'c an"
| lar,e prospective profits Inc tr'ils'',''" d"
| -, tremendous magnitude, and eS'"pliS"'s ''
reputation Of Michael 7. Grace ms Il ""'"'''' anu
q diploma.ist Of consummaic apHly
I, ,,ould be- the height OF ahsurdlty Tor any one
.. rou,.sent Mr.. Grace as acting a. dIslh'el's,c"
| NH
t,ai,oss mariners in Ncw-York. san Francisco
| , Sor,h America have the reputation oi "L'7
| ,o.si,elv benevolent in their dealings ''"''
| Nth ,,cn or nations. What he has s''' '"'" III
| aoi,,, will undoubtedly promote the "'l''"' ~
Porn but hc has also impaired s"'''"n''''
,.l,. ,o what were worthless bondholdeis ''"'"''
aud he has acted from the first from mo, ~
ol,h,cned sclf-intercst. Nobody mere "'A''''
,h., .i,hcr the bondholdcrs or the "I'''S "'.'
| ,o.c ANYTHING hy the contract entered ih'o WI"
| 10. ,..,'.orr,n,nt for the cNiinguishmcnt of the
| nullic debt, the transfer ami p'i''l '''P'
:, ~. railway system. and the development oi
| MINING and ruano Industries Indeed 'he oo""-
,oldcrs are promised in the circulars issued since
| ',,.,,, ~ tine contract handsome dividends
| an their Peruvian properties. Inc promises any,
! ~, .ours. to be heavily dlScouh"d'
| ,,, tho Graccs will share in all the prohts OF
| This AMAZING liquidation Of nations deo'S' ana
,h. farming ont OF It's railway system an" h"'"i'i
| resources This fact ought not To prevent rc'oS-
milton Of the prccmincnt qualities oi the originator
| - the scheme a, inanccr Inc uhdcrAAlhS
| vas h.sct with difficulties, which have oe'h
| gradually overcome with patience "co anu
| energy II will tend 10 restore puslh'ss c'n'ucH'o
| ,.~a ono cnd Of the country to the other. 1t
| will bring in masses Of fresh capital, furhiSh
| o,,nlo,.rcnt for thousands of workmcn, place a
Icr led
and extend it to industrial centres, where I'M
! o,.d transportation facilities are needed. There
| !. not a lanruishing business interest from fayla
90 puro that will not be invigoracd in greater or
| loo. dcorcc hv the execution Of the Grace con-
| tract.
! II, was in 1885 that Mr. Grace became possessed
| with the idea that "A financial settlement could
| be effected by which Peruvian credit ana pros
ncrtv might be rc-csablishcd on Il permanent
! hssis and the interests of foreign capitalists
| protected and rendered proiucilNe HE ''iNlo
| and Oroya Railway had passed under ms control
| and with il the Ccrro dc pasco mining and
tunnel concessions. The railway was one OF the
| ,uo most important Mcigss enterprises. having
been completed to Chicla, distance of 50 IL
miles from Callao, with an unfinished section on
which much of the heavy work had been done
in th, direction Of Oroya. The interests Of the
Ncicrs assignces had been purchased not only III
| this important line, but also IN the works at
Ccrro de Plsco III the heart OF one OF the richest
| Andcan silver districts, where tuhhcl WAS hccded
in order to drain the mines MIR. Grace made g.
contract with the Government for extending thc
| railway TO Oroya and Ccrro de Pasco. and for
| constructing the drainage tunnel and other works.
| His property was not touched when other rail-
| WAYS were arbitrarily seized by the PERUVIAN
| Covcrnmcnt but he was convinced Of the necessity
Of united action on the part of the Nation
| creditors for the protection OF their interests
He went to London, and after prolonged conSultl-
tions with representatives of the bondholdcrs. re-
| turned to Peru with authority TO act as their
} attorney Negotiations with the Government fol-
lowed and Scnor Aranivar was appointed Il special
! commissioner Ia prepare form OF contract 10
| be signed by Mr.. Grace as the bondhodcrs repre-
| xeuativc and then To he submitted to the
Peruvian Congress. An agreement was drawn
| up, providing for the cancellation of onc-halt OF
the public debt, and for the control of the re-
maindcr in such way as not to invadate the
| bondholdcrs' claims against Chilli grounded upon
| the seizure Of the nitrate and guano deposit 4
! which had been pledged for the payment of the
| general railway debt.