Evening star. [volume] (Washington, D.C.) 1854-1972, 1895-07-15
cHILE's GOLD MONEY
A Talk With South American Railway
Manager
Eject of Recent Financial Legislation
Additions to the Chilean
ft Navy.

Mr.. J.. NJ. Serrano of Valparaiso, Chile,
manager of the International railroad cor
Meeting Chile and Bolivia, is in Washing
ton. and gives interesting information of
the status Of affairs in that section, where
rumors of war have been prevalent of late.
The railroad Of which Mr.. Serrano is man
ager is the only one connecting those coun-
tries 1t taps the rich mining and nitrate
districts, and owns the principal mine in
Bolivia. As to Chile. which Is Mr.. Ser
ramos headquarters, he says:
THE greatest interest in Chile just now
is in the currency conversion law, resulting
In gold basis. which went into operation
on June 1. 1t has proved very satisfactory
in operation. and gives promise of changing
the rate of exchange SO that the balance of
trade will turn toward Chile. Both gold
and silver are coined, and the old paper
money continues to be used by many who
prefer 1t on account of convenience. But
the government always stands ready to re-
deem the paper in gold, SO that there Is an
actual coin backing for all our money. The
high credit of Chile abroad was shown re-
Of s2.O0OcO0 to redeem notes issued by the
banks. The loan was no sooner noticed in
London than 1t was subscribed for many
times over at low rate of interest.
The Chilean Navy.
THE Chilean navy" continued Mr. Ser
rano, now ranks as the first in South
America. Some fine ships have recently
been added and contracts let for others
The Blanco Escalada, which was blown up
by torpedo during the revolution, has
been replaced by new ship. which has re-
Gently arrived. She is one of the best war
vessels afioat. making twenty-five knots
an hour, and Is called the Blanco
Escalada. Another fast cruiser has been
ordered from England. and is now being
built These and others, with the Captain
Pratt at their head, will make formidable
fleet"
Mr.. Serrano took map showing the
changed geography of South America re-
sulting from the war in which Chile de-
feated Peru and Bolivia, and pointed out
little understood. Chile has now been ex-
tended northward until she holds all the
valuable nitrate country formerly included
in Peru and Bolivia. The northern part Of
this territory, known as Tacna and AFRICA,
was to be held by Chile under a plebiscite
until large cash indemnity had been paid.
But the indemnity has never been paid,
and the entire country seems 70 be perma-
nently part of Chile. Mr.. Serrano says 1t
was announced In the Chilean congress re-
Gently that an understanding had been Sc
cured with Bolivia 1t was generally be-
lieved that this included cession of the
Tacna and AFRICA country to Bolivia, re-
storing her coast line, but this was not
confirmed by the government and the ma
ture or the agreement IS not yet known.
Naturally, since the war, neither Peru nor
Bolivia has very friendly feeling toward
Chile.
Peru and Ecuador.
Before left Chile" continued Mr.. Ser
rano, there was talk. of trouble between
Peru and Ecuador over their boundary, but
there was no intimation that Bolivia would
Join Ecuador against Peru, as recent press
reports have stated. There are few rail-
reads connecting Bolivia and Peru. and
these are short spurs near the border.
There are no connections between the cap
itals and large centers, so that in case Of
hostilities movements of troops would be
difficult over the mountains. where the
travel is usually on mule-back."
Mr.. Serrano says the sentiment in Chile
over the Baltimore incident has died out,
and there is now the best of feeling be-
tween Americans and Chieans.
For a time" said he, there was much
bitterness Whether right or wrong. it was
the general idea that the Baltimore was
maintaining regular communications with
the shore, and carrying Information back
and forth The people also got the idea
that the Baltimore crew was sent ashore by
design to cause trouble. These views. and
the feeling against Mr.. Egan. the Unied
States minister, made bitterness lasting
some time. but it has entirely disappeared,
and the present United States minister, Mr..
Strobel. is much liked
Mr. Ssrrano says that the talk Of con-
public will pass away, as both countries
recognize that a victory to either of them
would in the end be more costly than 1t was
worth