The Hawaiian gazette., 1896-08-25
rIlGLrs FINANCIAL EXPERIENCE.

yenezueia is the latest South Amer
lean country that has adopted the gold
standard. This action was found nee
essary TO stay the demand for depre-
ciatet currency and was brought about
through 4 constitutional amendment
that has been ratified by nearly all
of the States As Venezuela has fol-
lowed the example set by Chilli. the
New York Journal OF Commerce gives
the following history of Chili's resump-
ton of specie payments in gold As
national finance seems 10 be the Ques-
ton of the hour, both the gold bugs
and the silverites may draw valuable
conclusions from this bit OF Gillian
history;
The law OF 1881 established bimetsl-
ism in Chill on q ratio Of lass 10 L
Il viii be observed that this was dis
tinetly unfayorabIe 10 silver as q
money metal. for the United States
ratio OF 1855 10 ! was TOO high and
the French ratio was 15-5 TO L The
Gillian ratio had the effect, which ap-
pears 10 have been its purpose, OF send
ing silver out Of the country and bring
ing gold in. so that the eOUatry used
silver in the settlement OF its inter
national balances and circulated gold
coin After 1874 silver fell so far that
the ratio OF 1883 was too low. and in
his report for 1876 the director OF the
Gillian mint said As result OF
the commercial ratio Of I 10 1888
Gillian gold. which before was favored.
has become underTalued in commercial
transactions BY about IL per cent
As I have before stated. we have moi
had 70 wait for the result The abund-
1Ece Of this gold coin has been followed
By It's almost entire disappearance from
our market Prior 70 the decline Of
silver silver coins did Tot circulate:
subsequent 10 that gold coins did not
circulate: both results are in absolute
accord with the experience under like
conditions OF the United States, Eng
land France, Germany, and other IA
ri01s. and both are quite inexplieible
according 10 the philosophy OF our free
coinage men
TIE banElz EE Of Chill Eas very
lax - years ago. but until the expuI-
sion Of gold the benknOte circulation
was lot large But Eheu gold vent
Out q USe the hzlkloEe circulation
Increased rapidly. because people
would not handle silver IN considerable
Quantities Hare L Z perfecz duplicate
Of our experience IN the early part OF
his century What we did many years
prior 10 1874 tkss CLfIiznS did for ser
eFzI years AFTER 1874 Chilli had 10
REFUGE the fEsuzsS Of minor silver. e
Ee did II 1888 and Frznee did z dozen
years EztsE. IN order 70 keep small
ehz1gs II circulation After silver had
displaced g1ld hecaIze IL was cheaper.
and besl displaced n Turn By pzpT
1ec2EsS i @zs Lighter tie Fzr With
Peru and Bolivia occurred and Isd 10
very hrgE Increases Of goTeEnueur
and bank peper- and these Issues were
Inen1T=rLhI@ The paper presently
defined and f0E seFeEzI years before
resumption Il Vzs very IoE and goIng
I1EeE- Tie original gold peso Fzs
woELh = Pe1es- szertfrg- the pzDE
PESO vas worth less than half q thai
EkEl ths legislation q 1852 and 1853
was szzfle5 6esigred tGi FeeSzzbIiSh
sFecis peFEeEs On the basis o. Z PESO
TUETh u Pele THIS legislation ~zs
d116nio1zf and fuprzcdezbIe- ard Ihe
peso decfned III II Tzs worth blE
III pe1ce Wien the RESUMPTION law
a 1886 Fzs peSsed TIE zSTeruEsnt had
70 EzEE zo1fes @ the Ezez EtzE engage
EE1z nd been enEsref tnt0 whfet
6epe1d=f UPo1 TIE promise q TIE gov
RwE u rsdeel ~ q Perce, bzE
70 d thai Fhea M PeSo Ezs EOrEa
bZz kzIf EEzr zE0uur wzz fegE 70 be
imposing Eoe kezTE Z burden On the
Sale % that Z a0ZpZO1IsS Tzs
sEseEsG EEo1 tie Ez=z q PESO q
e pe1es TEe Iztesz and TIE Ezeeesz
fl-I E=s7--E-Ic1 legizlzELo1 Fr9TI6st fCE
Ehe rH-e-p-1lr q ire hsrEOEes II goE6
zIzos this I'D HI hee1 Dr0Ti6ad f0- II
M ezrf5=E sE-z and Ezz z Izz61Eg re-
so1 E0- ths5F III EgzeE On June I.
1856 rEs grTRzEezr and hank pzDz
5ezzEe E=szsezzhIe II god coEzs On
tEe bzzzz Il PESO q L peEee
1 goc6 Esrr q EEe g0Ef tor tEs pzE-
#cse q r=sEEptf0z Ezz pEOezrs6 by
CE Is Il vas U the United States.
CT haziz sod II EZr0te BIT there
FEe TWO striking 6fEerenees herFeen