The morning times., 1896-10-27
CHEAP MONEY IN ARGENTINE
Minister Buchanan Shows the
Working of a Silver Basis.
IT'S EFFECT ON THE LABORER
He Il Today Receiving Less Wages
Than Ten Years Ago-ShiftinG Val
ues Have Unsettled Business ana
Stngnntiun Is the Re~ult-prices
Are high ana Wages Low.

Mr. Buchanan, United States Minister to
tile Argentine Brpubiic, in reIurt just
received 10y the Department Of state on
money and prices in fUreign countries,
says:
"A majority Of those who have written
To me from The United States regarding
wages and prices have invariably asked
mt 10 give HEN the result Of my obscrva-
lions with regard To the practical work
ingS Of tie cheap money system of this
country aS ii las affected, ana affects TIN
farmer ani waEc-carn"r.
-'On this point let me say that from an
extended and careful personal obScrYa-
ZION am convinced that. with possibly
few exceptions. all classes Of wurkmcu
here are loday receiving less wages, the
purchasing power Of their ms'Hey leing
considered thau they We're ten years ago.
at i true and easily understood that as
long as gold WAS rising the farmer VINO
was srlIu" lis products, aS lie had al
ways done ana continues To do. On a goa
price, fixed outside II the country, was
steadily receiving higher paper prccs for
all that he had to sell and was, IN con
sequence, a direct gamer 10y high gold
HOW THE FARMER rRoFITs.
1t is equally true that he has been the
Eaincr in other wa vs., he has paid nut lttle
moTe rent. II any. FOR his land than lie paid
five years ago. Strange as II seems ne
had paid. ami i today pa wing, but triile
more to his laboFCrs than when gold WIS
on u par ten years ago, and aS he produces
ouhis farm The meat. vegetables, etc, ncccS-
sary inr uI~ laul.4y. tee has uau 1ee !I"u
share of the gain III the rise in gold.
-'un the lr-i.rf uaud. the wurkuan found
1t very difficult to get an increase in his
wages. As gold advanced. 1t required
fuur years Tor him 10 get an average In-
IA l.
the fLrUer had been receiving the hcneiitS
Of IN iHcrcgs;. ia The gold premium ayerag-
ing more than 80 Per cent Tor the same
period.
In lue meantime the merchant fonnd il
easy and profitable tu lnr rca~. the price of
his goods. IN keeping with the rise OF gold.
Rents NErWI~c Increased. although NOR"
slowly ANA as III" prices af all CONNIE ud,ties
rose the IIhrrer lpund himself daily be
ing made poorer
LABOR THE VICTIM.
..AElUate as he would Ec could not get his
Bal1ry increased IN any reasonable proper
ton To the Increase IN the premium OF gold.
Strikes were rcsortcd to; Il Il SaEt> "f efforts
made TO IruE about an Increase in MS re-
Ceip;> Until finally, he last year reached
what We IuH "a wage nigh water mark
Since then gold has steadily fallen.
The iirSt person To- feel the decline has
been the farmer. who i complaining bit
terly OF the relatively l0w prices he is
receiving Irr his products. while he finds
himself obliged 20 pay the same prices for
what lie buys that he did when he re-
Ceivcd t2.5O more Tor every 100 kiloS
of wheat tBau he now receives
Low gold does not induce the merchant
To markGoTn' his goods with thcSimc good
VIII he manireSteI Nyncn he advanced their
price Notwithstanding the decline in the
Il fnf1 "a, "a,
workmen Will not, in all probability, con-
sent to a decrease in his present wages
without Il bitter fight; nor can he do SO, un-
less there is a sharp decline ia rents and
iii the cost of living. As gclil declines, the
wage-earner who receives gold salary
finds his income disappearing while his
expenses remainas before.
HAS STAGNATED BUSINESS.
This period of read iustment i'll the value
of tie money Of the country has brought
about a complete stagnat ION in business.
With the advent of low gold, the farmer,
who made money on its rise, turned specu-
lauor and holds his grain or cattle for
higher rate. The merchant cannot make
collections because of this condition of
things, and waits for lower gold. Thus
everyone. to some extent. bee ONES Il SpcCu-
lator, at lcaS to the extent OF trying TO
profit in some 'lanncr by the daily rise
and fail Of gold.
''of the fact that the unsettled and shift
ing value thus given TO the currency Of
this republic Injuries trade here, there
can be no question; and it can be equally
stated as Il fact that the wide fluctuations
have taken place in the value Of the cur
rency wjthin the past year or two have
brought On commercial situation far from
satisfactory 10 the merchants, farmers, ol
work ingmea.''