The Portland daily press., 1896-07-21
SILVER IN CHILL.
How Wage Farmers Have Been Afflict
ed by Cheap Money.
A Slight Advance in Wages But Less Than
the Depreciation in Money.

corner H1fUeenUh ana u oGreeUs, N, VS.
Washington, July Is, 1896.
The history of most countries which
have tried the silver basis during the
present century has been history of con-
slant fluctuations in the value of money,
changes in prices, great profits to shrewd
spectators and losses to wage earners.
Nearly every such country has made an
effort, when it's resources have permitted,
to establish the gold basis OF, when upon
paper basis. to resume specie payments
in gold alone
One Of the most Instructive chapters in
the history of the free coinage of silver
IS that which relates to the experience of
Chill. The people of that highly intelli-
gent, wealthy and compact republic have
suffered within a narrow area all the re-
suits of experiments with biinetallisIn,
have tested the impossibility of maintain
ng it, and have experienced the fall in
the real wages of labor and the confusion
of foreign exchanges which inevitably
follow such policy.
CHILTS BIMETALLIC PERIOD.
Chill endeavored, like France and other
foreign countries, to maintain the equal
bimetallio coinage of gold and silver
The mints were open TO both metals by
act of January, 1851. The ratio swas not
quite 16 to l, but little less friendly to
silver, being IS. 80 l. This slight differ
enoe protected Chilli during several years
after bimetallism became al acknowl-
edged failure in France.
| France was substantially upon the sin
gle silver standard prior TO the opening
of thu California and Australian mines.
These mines Increased the product of
gold so greatly that gold became less val
liable than silver, at the French coinage
ratio OF 10 10 to l, and was the only
metal offered ut the minis. Frances BIZ
metallists insisted, like American hi
metallists today, that gold valued at ST,
by the coinage laws could not fall below
silver francs in value, because it was
worth that at the mints.
This did not prevent silver going above
tina coinage value and disappearing from
circulation as absolutely as though it had
been wiped up with a sponge 1t YVES
this condition OF things which made gold
the chief medium of circulation in
France and kept it in circulation In
Chill SO long as the difference between
the market and the coinage value of gold
and silver was not great.
| Chilli began to experience the same
strange fluctuations in the coinage of the
TWO metals which was experienced by the
countries of the Latin Union after 1874.
Silver fell fTom16 1-3 to one in 1875 to
IL. 80 to one in 1876 and 1896 to zone in
1873 The fact that the two metals were
equal at the minis did not prevent the
sudden arrest of the presentation of gold
and it's heavy expectation. The amount
of gold minted in Chilli in 1875 was IS, 434
pesos. and the amount of silver was 2, :
151, 1855 pesos. The value of the gold peso
was then about 81 in United States gold
coin. The mechanical forces of the
mint were scarcely sufficient for coming
900 pesos per month. while silver was
imported and offered for coinage at the
rate of nearly 500, 600 pesos month. The
government was compelled to suspend the
reception OF silver while nina new ma
chimes were put in operation to keep pace
with the required coinage.
The evils of specie suspension were
complicated and enhanced by tine fall in
the price Of silver. War with Spain COM
PEELED the suspension of specie payments
by the National Bank of Chill on Sep
TENDER "a. 1866, but specie payments were
resumed promptly within the time fixed
by law in 1866, while tho country was
still upon the gold basis. The fight of
gold from the country after 1874 tended
to create u contraction of the currency,
which was met by increased issues OF
bank notes.
COMPLICATED BY SILVER'S FALL.