New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1896-09-09
Portu gal and the Gold Standard.


ty. It's people are among the most pro
gressive of the race. The history of the
land is like some absorbing romance, SC
filed is it with wonderous deeds and
glorious achievements There is some
thing strangely pathetic in the presen,
condition of the Portuguese when thei1
past and their capacities are remembered
The masses Of the people toll aid starve
| The products Of the country are eaten ur
by taxes while the fruits and wines and
cereals go abroad in a steady stream
Portugal is like some fu'l-blooded
strong, sleeper, secretly bled at nj ght by
Il leech to awake at morn, weak and un-
refreshed by that which should be a
source of power and growth.
The leech of this land is the gold
standard. Portugal's national debt is
about 750,0o0,00o, payable in gold in
accordance with the refunding laws OF
October 80, 1898. The prlncip pal holder
of the debt is the house Of Rothschi]d,
acting as trustee for British investors.
The original debt dates from 1850 and
the national bond issues were on silver
basis. About twenty three years ago
Portugal was placed on gold basis at a
meeting Of the national creditors held IN
the bank of England. That is, the ex-
penditures Of the country nccessitating
heavy taxation and the revenue being in
adequate, proposition was made to the
government to advance new loan. to
reduce the interest and to accept a grant
Of the internal taxes provided all the
| bonds were made redeemable in gold.
Bankruptcy stared the land in the face,
| and in order to obtain the new loan the
court acceded to these Terms. 1t was soon
| founl, however, that the reduction in in
terest amounted 10 nothing because it
was payable in gold. For many years the
revenues of the kingdom measured in gold
have been far below the expenses of gov
eminent. It has at times been almost an
impossibility to sell the national prod
ucts for price that would realize sum
sufficient to pay interest IN gold. In JAN
uary, 1892, the King of Portugal was
forced to relinquish fifth of his civil
list to cut down expenses and avert a
revolution. His pawning of the crown
jewels in London attracted world wide
attention year or more ago.
The great complaint in Portugal is
ruincusly low prices. For instance, the
olive crop sells fol- next to nothing in
the London market and the wages of
agricultural labor are barely enough to
afford the farm laborer sustenance.
Money IS very scarce. The deficiency in
the revenue adds yearly to the national
debt, which is over $3.50 a head for the
! population. 1t is very interesting fact
that the Portuguese were greatly 1nteres-
ted in the monetary conference at Brus-
sells and the delegates from their country
were pledged to vote with the represen-
tatives of the United States on all oues-
tons. This was due to our position in
Europe as an advocate Of bimetallism
and it was accordingly great shock to
! Portugal when our minister, George Will
liam Caruth, declared that it was the
policy of the United States to maintain
the gold Standard Premier Ribeilo ex-
pressed his Amusement at this and said
! his country would never have been. rep
resented at the Brussels conference but
for its understanding that the United
States was for silver coinage at Is to /
1Eati": The Cleveland administration
thus deliberately discrcdi,ej the United
States in the eyes Of the debtor nations
of Europe. Our natural position as tile
leading and only powerful and inf ueHti
al and wealthy debtor nation Of the worlG
has caused most debtor countries to abide
! by Our policy Oh the financial question
1t is well known that Portugal attached
| great Importance to the international
conference which Mr.. Cleveland refused
to call. The charge was openly made il
the Portuguese cortes that the Unitct
States had betrayed the debtor nation
into the hands Of Great Britain. So nue.
for the part played by the Cleveland ld
ministration in foreign affairs.
Today, as We have pointed out before
Portugal IS practically bankrupt He
people pay annual tribute in gold t
foreign tinanciers. The people are well
nigh desperate. Revolution has bee
once or twice barely averted. Indastr
: languishes. The agricultural populatio
' IS in the lowest depths of penury. !
) the cities the wages of labor are lowt