Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1896-05-09
Experience of chile.

OF Chile furnishes another impressive
warning to the wage Garner against the
evils of deprecated currency. In 1875
the peso, or dollar of Chile, was worth
about $50 cents in our money, but il
1885, ten years after gold went out anG
silver came in, the peso was worth less
than SO cents i'll our money. Silver con-
tinued to depreciate, and besides large
amounts of paper currency We're issued
by the government and the banks anG
in 1895, 20 years after the change from
the gold basis so the silver basis, tho
peso was worth only about "a p cents
in our money. Let us see now what eff
feet this cheap money, or, i'll other words,
this system of silver monometall:sr
which you are asked to adopt here, hat
upon the wages of labor in that country
In 1876, when the peso was worth $751;
cents, a mechanic, boiler maker,
blacksmith, carpenter, fireman ant
an ordinary laborer received together fo5
a day s work u pesos, or $16.37 in GU
money. In 1885 the same persons 1e
.ceived for the same work 2OA pesos
currency, this was equal to only 500:
in our money, and in 1895, 20 years aft
er the country had descended to a silve1
basis the same laborers received for the
same work 25. So pesos, but the value OF
the peso was less than 35 cents, and con.
sequently their wages amounted to only
$S "a in our money, or just about one
half Of what they, had received 20 yea1
before.
Our minister to Chile, after yer,
careful examination of the entire situ&
ton i'll that country, says, ct may b
taken fer granted that in Chile, as in al
other countries which have like finan.
cial experience, the consequences OF
cheap money have weighed most heavily
upon the classes that are least able tc
support the burden. The evils Of silver
recommendation and deprecated cur.
rency finally became intolerable in thai
country, and it has recently adopted thu
gold standard of value.
Mexico as an Instance.
Our neighboring republic of Mexico
has the silver standard of value, gol
not being in use, and if cheap money i
blessing to the laboring man he oJlgl
to be prosperous and happy in that coml
try. The Mexican dollar contains ST. l.
grains of pure silver, on nearly six grains
more than is contained i'll orlr dollar,
and yet, not being sustained by Il none
tary system which keeps it at a part,
with gold, it is worth only aboat 5:
cents in our money. Wages are paid il
silver and are very low in compar, son
with the wages paid i'll this country fol
the same services, in many instances not
being half as much, while the prices Ct
commodities generally are much higher
than they are here.
The prices of imported articles cspe-
cially are cxorbitantly high i'll Mexico,
because they have to be paid for abroad
i'll gold, and the depreciation of then
money is so great that it requires nearly
So i'll silver to pay 81 i'll gold. Although
our own silver dollar contains less fine
silver than the Mexican dollar, one OF
ours is nearly equal i'll exchangeable
value to two CT theirs, because here the
coinage is limited, and the government
has pledged its faith and credit to kecr
them as good as gold Il pledge that has
been faithfully kept up to this time,
Notwithstanding the complaints and de,
nunciations of our free coinage oppo-
nents.
If we are to have free and uniimit-
ed coinage of legal tender silver for the
no. ~ q = 10 h,,1
the value of our dollar would be IL
greater than the intrinsic or commercial
value Of the silver contained in it, anG
its purchasing power in the markets
would he diminished about one-half
but the wages of labor would remain,
for long time at least, substantially at
the present rates, or, if they should be
nominally increased on account of the
depreciation of the currency, experience
in the past shows that they would not
increase in proportion to the increase III
the prices of commodities. Rises in the
rates of wages take place very slowly,
while the prices of commodities move
rapidly, at some periods changing sew
eral times in the course of a single day,
eit tiiNf'S iAoNS iAAS-eo uiS illOit
frequent and more harmful when the
currency is in an unsettled condition.
Why Savings Would Be Lost.
If the solution of this question affect
ed only the character and amount and
purchasing power Of the future earnings
of the American laborer, it would still
be a subject Of the gravest Importance
to him, but its importance is greatly
increased by the fact that the safety
and value Of very considerable part of
his past earnings are also involved. The
thrifty and provident workingman is
not a debtor, but creditor, and the
corporations and individuals having the
custody of his earnings are indebted to
him and ought to pay what they owe
him in just as good money as he put
into their hands.
The banks, trust companies, building
associations and other similar institu-
tons owe the people Of the United
States today s., 353. 1873, 521 for money
actually deposited, sum nearly eight
times greater than the total capital Of
all the national banks in the country.
while the life insurance policies held by
the people in the various kinds Of cor