The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-04-24
FREE-sILvER LESSON FROM
~ CHILE.

J In his recent address at Chicago Sec
rotary Carlisle drew a lesson from Chile
as to the effects of cheap money on
1t was not a new lesson, but was
none the less instructive On that account.
The facts cited by Mr.. Carlisle, based
on official reports, showed that in Chile,
as in all other countries which have had
a k financial experience, the conse-
quences Of cheap money have weighed
most heavily on he classes that are
least able to bear the burden. His argu-
'ment on this point was so strong that
some of the advocates Of free silver have
tried to break it's effect by denying the
facts. and they have ever gone so far as
to assert that Chile, instead Of having
suffered from free silver. enjoyed great
prosperity under it. No doubt the prices
of man products and commodities did
advance, as they always do under an in
fiated or deprecated currency, and with
nan persons that is synonymous with
prosperity. But the point made by Mr..
Carlisle was that to ~wage-earners it
brought only evil. Laborers continued
to receive in deprecated money about
the same wage they had received be-
fore the currency deprecated, while for
all the necessaries of life they had to
pay much higher prices than formerly.
Mr.. Carlisle's argument was directed
to the single point of the effect of free
silver on wages. Its effects in other di-
rections are described in a statement in
the Atlanta Journal by Mr.. Julio M.
Foster, late Chilean commissioner to the
Atlanta Exposition. He says:
Chile Is essentially a silver-producing
country. She owes to the slyer-mining in
that has given her 60 nrominenf q rank
among the Spanish-American republics.
Owing to modern improvements in methods
and costs of producing silver ores, Chile,
In common With all other countries that
yield the white metal, has been enabled
to increase the output of bar silver to an
enormous extent, vastly in excess Of the
creased in proportion. In obedience to the
invariable law of supply and demand, the
worth 81 per ounce It took. care. Of itself
and was a desirable coin, but II, as fire.
quently happened. hard times oppressed the
people, this abundance of silver coin gave
Unfortunately the overproduction Of sill
yer and wheat In the world caused great
those commodities. Silver dollars decreased
in value and In circulation because of these
natural and legitimate reasons. Their COIN
age was diminished and finally stopped:
All business was transacted on a gold
basis. This state OF things reduced the
enormous profits to which the rich and
ttofcre been accustomed. They began to
agitate and sent political delegates among
the people,, preaching to them that the
ceive silver in payment for their loans,
were causing all the distress, and also that
they brtbed the parties in power in govern
ment to antagonize silver, etc.
The silver ring In Chile was successful in
engineering through Congress the law for
the legal tender of silver again. After a
cred that the effect of. the law was con-
trary to the thing IL was designed to pro-
duce; Salaries advanced under the silver
d.smay they found tina all the necessaries
of life increased in price so that many of
the poorer laboring classes found them
of every description languished. Gold dis
appeared from circulation, public credit
was injured. General Indignation was
silver miners, and by an overwhelming ma
jority the law was repealed. and in Sep
TENDER last Chile boldly stamped the de-
cree establishing gold as the standard coin.
Public confidence was speedily restored,
gold again poured into the country whose
credit had revived; and the recent Chilean
was covered twenty times by the bids Of
fered.
AS a statement Of actual experience
this is better han any amount Of the
orizing. and some of it's features are
repeated in this country in such a way
as to give it special interest We are
having the same agitation by mine
owners for free silver coinage as a cure
for hard times. the same denunciation OF
the gold bugs OF Europe. the same
charges OF fraud In the characterization
of silver. etc.. that this statement sho ws
they had in Chile. No doubt II the sif'er