The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1894-04-21
THE SILVER LINING.
lTimes-D -Democrat.l

The countries suffering most severe
" from the present great depression
In silver are naturally the Latin Ameri-
can republics, which are not only
large producers Of the white metal,
but depend almost exclusively on a
silver coinage. Reduced to the verge
OF bankruptcy by the demonstration
Of silver, several of them have finally
determined TO retsliate on England,
which country they hold responsible
for the present financial decentralization
BY defaulting In interest on their
bonds, as the latter are held mainly in
England. This will touch the pockets
so that creditors will appreciate some
OF the disadvantages resulting from
the decline as well as the silver pro.
ducing countries.
The government Of Guatemala has
already served notice In London that
the interest on Its gold bouds due
July l, will not DO paid because OF
the low price Of silver, In which the
government collects all Its revenues,
and the high price Of exchange. The
information has caused Guatemala se-
curities TO drop so per cent In Lon
don. None Of the Latin American
States has been more scrupulous In
the payne of its interest
Similar action may be expected from
the Argentine Republic; indeed tele-
grams have already beon received in
Washington from Buenos Ayres to
the effect that the action of Guatemala
Is heartily approved there, and that its
example ought TO be followed by all
the silver using countries Of America
In the same predlcament.
A representative at Washington of
one Of the South American States put
the matter In this light:
Ii silver continues to decline, or II
the present conditions continue, we
shall be unable 10 meet our obligations
because we receive our revenues IN
silver money aud are compelled to
pay our obligations In gold. Gold il
now worth twice as much as It wal
when those obligations were incurred
which is not our fault, but the fault OF
our largest creditor-England.-and II
England destroys our ability to pay
our debts she can blame no one but
herself. Every nation In Central
aud South America will default In III
interest unless something is done to
restore the value Of our money, aud Il
is right for England to suffer, because
che Is mainly responsible for the ex.
isting conditions. II she will recognize
silver a. money the rest Of the world
will do SO. II she will not her people
must take the consequences.
/ The situation In Mexico 10 a COED
sample Of most Of the silver using ns'
tions. Its foreign debt held mainl,
IN London and Amsterdam, Is $50,
100000 paying 6 per cent in gold
When the debt was contracted th,
Mexican silver dollar was worth ninet,
cents iu gold to-day 1t Is worth onl,
forty-eight cents, 80 that the burdeI
ofthe debt has been very nearly doub
led by the fall In silver. 1t Is twice o
difficult for Mexico to raise the money
needed for the interest and Presi
dent Diaz calmly announces that hi
government will take no special pain
to do 90.
The condition prevailing in the sill
YER countries Is proving Q powerful
stimulant TO the growth ofbimetalisu
In England and beacon light Of warn
Ing to American financial thought
What Is needed In this country Is t
hold the silver zealots 10 check aud le
tho potion work. Aud this Mr.. Cleve
land, of all men, may be trusted to dc