The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-27
A goddess REPUBLIC
MINISTER BUCHANAN ON MONEY AND
PRICES IN ARGENTINA.
How the Wage Garner HAS Suffered
in Land Burdcned with Fiat Pa
per and Silver Currency.

WASHINGTON Oct. 26.-Mr. Buchanan,
United States minister to the Argentine
Republic in u report to the Department OF
State on money and prices in foreign coun-
tries. says: "A majority of those who have
written to us from the United States re-
garding wages and prices have invariably
asked me to give than the result of my
observations with regard to the practical
workings of the cheap-money system Oh
this country as it has affected and af1ects
the farmer and wage Garner. On this point
let me say that from extended and careful
personal observation 1 am convinced that,
with possibly a few exceptions, all classes
of workmen here are to-day receiving less
wages, the purchasing power of their
money being considered, than they were
ten years ago. 1t is true and easily under
stood that as long as gold was rising, the
farmer, who was selling his products, as
he had always done and continued to do,
on a gold price, fixed outside of the coun-
try, was steadily receiving higher paper
prices for all that he had to sell, and was,
in consequence a direct gamer by high
gold. 1t is equally true that he has been
a gamer in other ways; he has paid but lit
tie more rent, if any, for his land than he
paid five years ago. Strange as it seems,
he had paid and is to-day paying but
trfe more to his laborers than when gold
was on a par ten years ago, and as he pro-
duces his farm the meat, vegetables,
etc. necessary for his family, he has had
the liens share of the gain In the rise OF
gold
it very difficult to get an increase in his
wages as gold advanced. 1t required four
years for him to get an average increase
farmer had been receiving the Dement'S OF
increase in the gold premium averaging
In the meantime the merchant found it
easy and profitable to increase the price OF
his goods in keeping With the rise OF gold
Rents likewise increased although more
slowly and as the prices of all commodi-
ties rose the laborer found himself daily
being made poorer. Agitate as he would
any reasonable proportion to the Increase
in the premium on gold. Strikes were re-
sorted to; all sorts of efforts were made
to bring about increase in his receipts,
until finally he, last year reached what we
may call wage high-water mark,
since then gold has steadily fallen. The
first person to feel the decline has been
the relatve wH low prices he is receiving
for his products, while he finds himself
obliged to pay the same prices for what
he buys that he did when he received 81: 80
more for every 100 kilos of wheat than he
receives. Low gold does not induce
the merchant to mark down his goods
when he raised their price Notwithstand-
ing the decline in the employees income. as
probability. consent to decrease in his
present wages without a bitter fight; nor
can he do so unless there is a sharp de-
cline in rents and in the cost of living. AS
gold declines the wage Garner who receives
a good salary finds his income disappear
ing. while his expenses remain as before.
This period of reimbursement in the value
of the money of the country has brought
about a complete stagnation in business.
With the advent of low gold the farmer,
who made money on its rise, turned specu-
lator and holds his grain or cattle for
hi 10Th rat ms lSe
collections becauseA of this condition of
things. and, as he has to pay abroad, he
also becomes a sDecuator and waits for
lower gold. Thus, every one to some
tent, becomes a SPECTATOR. at least to the
extent of trying to Droht in some manner
by the daily rise and fall in gold. OF the
fact that the unsettled and shifting value
thus given to the currency of this republic
Injuries trade here there can be no question;
and it can be equally stated as fact that
the wide fluctuations that have taken place
in the value of the currency within the past
year or two nave brought on a CONNER
cial situation far from satisfactory to the
merchants, farmers or workingmen.