The Delta independent., 1894-04-11
BRIGHTER OUTLOOK FOR
SILVER.

How tho Republics of Central and south
America Are Planning to Force
Great Britain Into Accord
Ing Far Treatment
to silver.
The Washington correspondent OF the
Chicago Record writes his paper as follows:
The little republic Of Guatemala has giyeE
John Bull a terrible blow beneath the belt.
About a month ago Fernando Cruz, the min
istcr OF Guatemala In London, under instruc-
tons from his government, announced tina,
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 been worth from
10 to ~ cents, has dropped TO 3S and Al, and
as the revenues Of the republic are received
In silver the interest on the bonds is practi-
cally doubled, and the government is made
10 pay 8 per cent instead OF per cent. per
annum.
The announcement created great deal Of
surprise, for the reason that for many years
Guatemala has been scrupuious in meeting
her obligations and the interest Is not due
until the LIST Of July. The bonds, which have
been quoted from 80 to 60, dropped to 30
when the news was known.
The EnglIshmen, who have an association
| of American bondholders In London, cablcd
! their rcmonstrances 10 the government Of
Guatcmsla and caused an Investigation TO be
made. They now claim TO have evidence TO
Justly them In the opinion that the default
| OF Guatemala IL not due To any Inability to
| meet her Bnancia! obligations, but To punish
| England for her stubborn opposition to b.
metallism and her responsibility for the de-
| cline In the value of silver by suspendlng
4 n nd hnudHnl1Frs
asked the government to intervene and
| force the payment OF the intcrcst when due,
and this 1. one of the fret questions Lord
! kosebery will have TO 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
| 10 admit the truth OF the charge. The de-
| fcnsc and Justification viii be that by reason
| OF the policy Of Great Britain toward silver
| the national currency of Guatemala Is de-
| prired OF one-hslf It's value. and Its obliga-
| tions thereby doubled. 1t is therefore Impos-
! sIble for the government TO meet those o5l!-
1 CATIONS, and the subjects of the nation that 10
! responsible for the situation must suffer.
| Great Britain may send down 4 man-of-war
10 collect the Interest on the debt for her
| bondholders, as they will doubtless request,
| tut II she attempts force she Will have 10
| blockade egcry harbor south of the Gulf Of
| Mexico and the Rlo Grandc, for the example
! Of Guatemala IS likely TO be followed by mosi
II not all 81 tho Latin American countries,
! There need be no surprise II Mexico serves
! similar notice upon tho owners of her bonds
in Great Britain before the ,culi-annual in-
torest comes due in July next The foreign
| or external debt OF Mexico. which amount. to
a., 800 coo, 10 held In London and Amster.
| dam, Whcnit Was negotiated or funded At
| o per cent. the Mexican silver doilar-tho
standard Of value In that country and In some
! OF the other American rcpublics and 10 the
] West ludcs-was worth from % to 90 cents
| In gold. making the interest on the bonds, II
computed in silver less than o.. per eent. At
| present the Mexican dollar is worth only is
| cents In gold, and. as the revenues and the
| currency Of the government. which II must
use TO buy gold 10 pay i,s Interest, are er.
cluslvoly silver. the Interest charge 1. praeti-
oally between 10 and Il per cent and Its obll-
cation. doubled.
Great Britain !. held re.ponsIblc for this
| situation. Her opposition to silver Is con
| dcrnned as unreasonable and unnecessarily
stubborn, and the .u,pcn.ion OF eoluasr 10
| India !. regarded as the scyercst blow that
| was ever aimed at silver money.
Mexico has not yet announced that there
will be a default In her interest, but may be
| expected 10 do 20 At any time. There Will be
| no Reputation OF her debt, hut simply post
poacmenL The pAvment Of her Interest win
| bc deferred until the Mexican dollar is worth
| more than 80 cents.
| Of the Argentine Republic also. kilograms
1 from Bucnos Ayrcs contain nnmI.takabic cv-
idcnec that the policy Of Guatemala Is ap-
| proved, There Ia no question that it has the
! sympathy of all tho Latin American repub-
| lics and probably of ali tho .flvcr-standard
| nations. The diplomatic representative OF
| one Of the South American republics pre-
| dicted the other day that before July they
would all suspend payments until silver had
| recovered .omc Of It's ucrnal former
value.
rlt silver continue. 10 decline" be re-
marked. "or II tho prcsent conditions eon,in-