The National tribune., 1896-11-05
rREr srLyER IN CHILE.

cne most enlightened, progressive, and
prosperous of the countries Of South
America is Chile. The Chileans are
termed "the Yankees Of South Amer
lea" They have an abundance of fer
tile territory, their country is rich In
natural resources, and they have so
much within themselves that they feel
independent of any and all other coun-
tries. They talk as loudly and conf
IDENTIFY of "Chilean policy" as we do
of an american policy" and, even more
than ourselves, think themselves capa-
BILE of doing exactly as they please, with
out consulting anyone else.
They adopted Free Coinage in 1851,
fixing the ratio between gold and silver
at 1859 to 1, thus undertaking. silver
slightly more than we did at the time.
The reason was that Chile produced
much more silver than gold. AT the
same time we were producing much more
gold than silver, and our reason for over
valuing gold was therefore the better
one.
She had the same experience that we
did. As long as the world was produc-
ing much more gold than silver, the lat
ter was either boarded or exported, and
the Chilean silver peso disappeared from
circulation as completely as our silver
dollar did prior to 1873.
Then when the tide was turned by
The discovery of great silver mines in
the United States and Australia, the
silver peso became the current coin,
and gold was boarded or exported, and
disappeared from circulation. By 1878
there were nothing but silver pesos in
circulation, and these fuctuated so con-
stantly in value as to produce incalcu-
liable trouble and loss to everyone. The
workingmen, wage-earners, and officials
tried in vain to have their salaries
pushed up to compensate for the declin-
ing purchasing power Of the peso. Senior
Maximililiano Ibanez, member OF the
Chilean Congress, says:
Laborers have seen their wages increased,
| but their habitations, food, and clothing
! have increased in the same or greater pro-
| portion than their wages. Artisans and
small tradesmen have seen the cash value OF
their products diminish in the same man
ner. To-day they earn two pesos where
yesterday they earned one, but the two
pesos to-day represent but rs pence Eng
| lish money!, and the former peso was worth
! as pence. The same has happened to all
| tradesmep and manufacturers who although
they have sold their products at prices APP
parently high, have, on the other hand, pro-
duced or bought at an exaggerated cost on
account of the depreciation OF money.
The evils became so intolerable that,
after trying various schemes without
effect, Congress at last brought the
country squarely to a gold basis. Feb
ruary, 1895, it passed an act fixing the
value Of the silver peso at 361a cents
4 in United States currency, and declaring
that to be the monetary unit" The
legal tender quality of silver coin was
limited to 80 pesos-s1S.25. The gold
coins were the escudo, Of five pesos, the
doblon, of 10 pesos, and the condor, of
20 pesos. Debts and obligations of
more than 80 pesos must be paid in
these, or in bank notes based upon them.
Banks cannot issue notes of less denomi-
nation than 20 pesos-S7.30. The peso
is divided into 20-cent pieces, worth
7.3 cents 10-cent pieces, sc cents, and
Scent pieces, 1.S cents.