The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-08-12

Ver..She Tried to Maintain the
Equal Bimetaliic Coinage of Gold
and Silver..silver Fell and Gold
Flew..Gold Now Resumed.
One OF the most instructive chapters
IN the history of the free coinage of
SILVER Is that which relates to the ex-
perience OF Chill, says the New York
Herald. The people Of that highly in.
tehgent, wealthy and compact republic
nave suffered within narrow era all
the results Of experiments with bimet-
aiiism, have tested the impossibility of
maintaining 1t. and have experienced
!ne rail- In the real wages Of labor and
the confusion Of foreign exchanges
which inevitably follow such a policy,
Chill endeavored, like France. to
maintain the equal bimetallic coinage
OF gold and silver. The mints were open
TO both metals by act of January. 1851.
The ratio was not quite 16 to l, but a
little less friendly to silver, being 1879
to !. This slight difference protected
Chill during several years after bimet-
alism became an Acknowledged failure
In France.
france was substantially upon the
single silver standard prior to the open.
Ing of the Californian and Australian
mines These mines increased the pro.
duct of gold so greatly that gold became
less valuable than silver. at the French
coinage ratio of 15h to l, and was the
only metal offered at the mints.
frances bimetallists insisted, like
American bimetallists today, that gold
valued at 5f. by the coinage laws could
not fall below silver francs in value,
because 1t was worth that at the mints.
Ihis did not prevent silver going
above the coming value and disappear
ing IRON circulation hs absolutely as
though 1t had been wiped up with a
sponge. 1t was this condition of things
which made gold the chief medium Of
circulation In France, and kept Il in
circulation In Chill so long as the differ
ence between the market and the coin.
Ing value Of gold and silver was not
great
SILVERS UNSTABLE VALUE,
Chill began to experience the same
strange fluctuations in the coinage Of
the two metals which was experienced
by the countries Of the Latin Union af-
ter 1874. Silver fell from 1913 to one in
1876 to 1880 to one in 1876 and 1896 to one
In 1873. The fact that the two metals
were equal at the mints did not pre-
vent the sudden arrest of the presenta-
ton OF gold and Its heavy expectation.
The amount of gold minted in Chill in
1915 was S5.434 pesos. and the amount
OF silver was 2,15l,735 pesos. The value
OF the gold peso was then about 81 in
United States gold coin. The mechani-
cal forces Of the mint We're scarcely suf-
ficient for coming 25O,OOO pesos per
month. while silver was imported and
offered for coinage at the rate of nearly
100000 pesos a month. The government
was compelled to suspend the reception
OF silver while nine new machines were
put In operation to keep pace with the
required coinage.
The evils of specie suspension were
complicated and enhanced by the fall
In the price of silver War with Spain
compelled the suspension of specie pay
ments by the National Bank Of Chill, on
Sept. "a. 1865, while the country was still
upon the gold basis. The flight of gold
from the country after 1874 tended to
create a contraction Of the currency,
which was met by increased issues OF
bank notes.
Forced loans by the government in
the form of bank notes, issued for pub
lie uses rather than for the legitimate
purposes of business. drove paper be-
low par In silver and led the country in
mire from which escape grew daily
more difficult with the steady fall in the
price of silver. The government made
bad matter worse by putting out its
own paper issues in 1879 and 1880, which
were swelled by the issues Of President
Balmaceda during his attempt to crush
the Congressional party.
WENT TO GOLD BASIS.
The persistent fall in the value Of sill
yer made resumption of specie pay
ments in that metal little better than
continuance upon paper basis. The
Chilian government, therefore, deter
mined to resume specie payments in
gold, but at a rate of exchange which
would accord with the actual value Of
the paper In gold at about the time Of
resumption. The first legislation on
the subject was not successful and Ii
became necessary to make a new read
justment which carried the value of the
standard coin, which had formerly been
81, down to about 36.49 cents in United
states gold coin. The dollar was made
the monetary unit but was reduced to
one-thirteenth part of a pound sterling,
instead of constituting more than one
fifth of pound sterling. as in the case
of gold dollar of the United States.
The vice consul at Antofagasta fur
nished table showing wages in differ
ent occupations during 1875. 1885 and
1895. These statistics showed only q
small advance in wages during the first
period Of 10 years, when the value Of
the peso had fallen in gold from 43N
pence. English money, to 26 pence.
The decline in the gold values Of
wages, therefore, was from SO cents. in
United States money. to So cents per
peso, while the actual wages in de-
preciated money advanced only from
rates Of $50 to 400 pesos for black
smiths In 1876 to $50 to $50 pesos 1885;
carpenters from 800 to 400 pesos in
1875 to 3.25 to 400 pesos in 1885, and me-
chanics from 800 to 45O pesos in 1875 to
500 to $50 pesos in 1885. The wages
of laborers. including servants. remain-
ed stationery at 1.5O to LIS pesos in de-
preciated currency.
The actual gold value Of wages thus
fell in the case of laborers nearly 40
per cent. and In the case Of mechanics.
taking the maximum in each year.
about Is per cent. Minister Strobel in
summing uD the results of his inquir-
les. states that the rise in wages has
not corresDOnded to the depreciation
in money" and calls attention to the
fact that "in country like Chill, which
is in state of development. it would
be natural to expect an increase Of