The Meeker herald. [volume] (Meeker, Colo.) 1885-current, 1894-04-14
a BRIGHTER OUTLOOK FOX
SILVER,
How tho Republics of Central and south
America Are Planning to Force
Great Britain Into Accord
ing Fair Treatment

The Washington correspondent OF the
Chicago Record writes his paper as follows
The little republic of Guatemala has slyer
John Bull a terrible blow beneath the belt.
About month ago Fernando Cruz, the min
lister of Guatemala In London, under instrue-
tons from his government, announced that
the interest on its bonded debt would have to
be passed on account of the low price OF sill
yer and the high rate Of exchange. The
Guatemala dollar, which has beeu worth from
Is 10 20 cents, has dropped TO IS aud Il, and
as the revenues Of the republic are received
ia silver the interest on the bonds Is pract.-
caIly doubled, and the government Is made
10 pay per cent. instead Of per cent. per
annum.
The announcement created a great deal Of
surprise, for the reason that for many years
Guatemala has been scrupulous In meeting
her obligations and the Interest +, not due
until the LIST Of July. The bonds, which have
been quoted from 50 to 60. dropped TO 30
when the news was known.
The Englishmen, who have an association
OF American boudholders in London, cabled
their rcmonstrance. TO the government OF
Guatemala and caused an investigation TO be
made They now claim TO have evidence to
Justly them In the opinion that the dciaul,
of Guatemala is not due to any iuah!hy 10
meet her financial obligations but 10 punish
England for her stubborn opposition to d
metalllsm aud her responsibility for the 10
cline in the value OF silver by suspCudlus
coinage In India The boudholders have
asked the government to intervene and en-
force the payment Of the Interest when due,
and this Is one OF the first questions Lord
Rosebery viii have 10 meet.
Guatemala has entered no denial, nor do
believe that her government desires to con
ceal the motive for her extraordinary policy,
although her president could not be expected
to admit the truth Of tue charge. The de-
Tense aud Justification will be that by reason
Of the policy Of Great Britain toward silver
the national currency OF Guatemala Is de-
prlyed OF ouc-half is value, and IL ohlga-
ton. thereby doubled. 1t Is therefore impOs-
sible for the government to meet those obll-
cations, and the subjects of tue nation that ls
responsible for the situation must suffer.
Great Britain may send down a man-of-war
to collect the Interest on the debt for her
boudholders. As they Will doubles. request,
UGt II she attempt. force she will have TO
blockade every harhOr south Of the Gulf OF
Mexico and the Rio Graude for the example
OF Guatemala is likely TO be followed by most
II not all Of the latin-Americsn countries.
There need be no surprise u Mexico serves
similar notice upon the owners OF her bonds
In Great Britain before the -emi-anuual In
or external debt Of Mexico. which amounts to
s., 500, Coz, Is held lu London aud Amstet-
dam. When it vas negotiated or funded at
& per cent, the Mexican silver doilur-thc
standard of value In tnat country aud In some
Of the other American rcpuhiics and To- The
West ludies-Wus worth from % To 20 cent?
la gold, making the lntcrcst on the honds. II
computed In silver less than q per cent At
present The Mexican dollar is worth only i
cents ia gold, and, - lhe revenues aud the
l.E.. .
use TO buy gold to pay is Interest, are cN-
clu-lyely silver. the Interest charge is praet-
eally between 10 and "A per cent and Its obll-
cations doubled
Great Britnln e held responsible for this
situation. Her opposition TO silver = con-
demued ~ unreasonable and unnecessarily
stubborn, and the -uspeurInn at rni"s -
luGIs Is regarded ~ the sev"Test blow that
was ever aimed at silver money,
Mexico has not yet announced that there
will he IL default ia her interest, but may be
expected to do 80 At any time. There viii be
no reputation Of her debt, but simply post
ponement. The payment OF her interest VIII
be deferred until the Mexican dollar Is worth
more than 90 cent?.
Similar action may be expected on the part
OF the Argentine Republic also. kilograms
from BUcnos Ayre- contain unmistakable cv-
ideuec that the policy of Guatemala Is ap-
proved. There is no question that 1t la. the
sympathy OF all the l.ntin-Amcrican rcpub-
lies. and probably OF all the silver standard
nations. The diplomatic representative of
one Of the South American republics pre-
dicted the other day that before July they
would all suspend pay uents until silver had
recovered come OF its normal or former
value.
III silver continues to decline" he re-
marked. "or II the present conditions contln'
ne, We shall be unable TO continue our obi
cations. because We receive our revenues ir
| silver money and are compelled TO pay thos,
| obligations In gold. Gold Is now worth
| twice r. much a. It was when those oblga
/ lions were Incurred, which is not our fault
| bu; the fault OF our largest creditor. Eng
| land ;!and II England destroys our ability Il
! pay our debts she can blame no one but her,
self. Every nation in Central and Soutt
| America will default in Interest unless some
| thing Is done to restore the value OF our mon
| ey: and Il Is right for England to suffer, be
| cause she is mainly responsible for the exist
Ing conditions. II she will recognize silver
rs money the rest Of the world will do so. Il
| she Will not her people must take the consc
| quence-.n