Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1895-07-16
SOUTH AMERICAN AFFAIRS.
The Gillian Navy Much Improved, Status
of Several OF the Republics.

the International Railroad, connecting
Chile and Bolivia, IS in Washington,
and gives interesting information Of
tine status OF affairs in that section
where rumOrs of war have been preva-
lent of late. The railroad Of which Mr.
Serrano is manager is the only one cons
Meeting these countries. 1t taps the
rich mining and nitrate districts, and
owns the principal mine in Bolivia. AS
to Chile. which is Mr.. SerranO's head
quarters, he says:
THE greatest interest In Chile just
now Is the currency conversion law, re-
sulting in a gold basis which went in
10 operation on June l. Ii has proved
very satisfactory in operation, ana
gives promise Of changing the rate OF
exchange so that the balance OF trade
viii turn toward Chile. Both gold and
silver are coined, and the old paper
money continues to be used by many
who prefer it on account of conven-
fence. But the government always
stands ready to redeem the paper IL
gold, so that there is an actual com
backing for all our money The hlgh
credit of Chile abroad was shown re-
Gently when the government wanted
loan of S2000000 to redeem notes IS
sued by the banks. The loan was no
sooner noticed in London than 1t was
subscribed for many times over at q
low rate Of interest.
The Chilean navy" continued Mr..
Serrano, now ranks as the first IN
South America. Some fine ships have
recently been added, and contracts let
for others. The Escalada, which was
blown up by torpedo during the reyo-
luton. has been replaced by a new
ship which has recently arrived. she
is one Of the best war vessels atioat,
making % 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 a formidable fight"
Mr.. SerranO took map showing the
changed geography Of South America
resulting from the war in which Chile
defeated Peru and Bolivia, and pointed
out the significance of the changes,
which are little understood. Chile has
now been extended northward until
she holds all the valuable nitrate coun-
try formerly included in Peru and DO
liv.a. The northern part Of this terri
tory. known as Tacna and AFRICA, was
to be held by Chile under q plebisc.te
until a large cash indemnity had been
paid. But the indemnity has never
been paid and the entire cOunJry-seemS
! 10 be permanently part OF Chile. Mr..
Serrano says Il was announced in the
| Chiltan congress recently that an un-
! derst2nding had been secured with Bo-
hvia. II was generally believed that
this included q cession Of the Tacna
and AFRICA country to Bolivia restoring
her coast line. but this was not con-
| frmed by the governemeDj and the na'
ulre Of the agreement is not yet known.
! Naturally. since the war neither Peru
or Bolivia has d friendly feeling TO-
ward Chile.
Before l left Chile, continued Mr.
| Serrano. there was talk of trouble be
tween Peru and Ecuador over their
| boundary. but there was no intimGtlOn
| tha. Bolivia would join Ecuador against
! Peru. as recent reports have stated.
There are few RAILROADS connecting Be-
Hvia and Peru. and these are short
spurs near the border. There are no
connections between the capitals and
large centres. so that in case of hostile
ties. movements Of troops would be DIFF
fcult over the mountains, where travel
is usually on mule back
Mr.. Serran0 says the sentimen, in
Chile over the Baltimore incident has
died cut. and there are now the best or
feeling between Americans and Chile
ans.
Fer a time" said he, there was
much bitterness. Whether right or
wrong. # was the general idea that the
Baltimore has maintained regular COM
municarions with the shore, and carry
ing Information back and forth. The
people also got the idea that the Balti-
more crew was sent ashore by design
10 cause trouble. These views, and the
feeling against Mr. Egan, the United
States Minister, made a bitterness, last
inc some time, but it has entirely dis
appeared. and the present United
STATES Minister, Mr.. Srrobel, is much
liked"
MIR. Serrano says that the talk OF
conflict between Chile and the Argen-
tine Republic win pass away, as both
countries recognize that a victory 10
either of them would in the end be
more costly than it was worth.