Bellows Falls times. [volume] (Bellows Falls, Vt.) 1856-1965, 1896-07-22

Luther f. Mckinney, formerly of Man
chester, and now the United States minis
ter to Colombia, South America, sends the
following letter to the New York World.
1t shows the practical workings Of free sill
yer coinage, and is of especial interest at
this time:
Bogota, June IL.
To the Editor of The World:
AS the money question seems to be the
important question in the present political
contest in the United States, thought it
might be of interest to the many readers of
The World to know what effect silver
legislation has had upon the people of
Colombia.
Twenty years ago, in 1876, gold and sill
yer were coined in the mints of Colombia,
both being legal tender for all debts, and
at that time, owing to the scarcity of the
white metal, silver was at premium over
gold of about per cent.
About 1880 gold was at premium, be-
cause the imports exceeded the exports,
and as the balance had to be paid in gold
it required small premium to get the gold
for the purpose. Up to 1885 the govern
ment continued to coin gold and silver,
and at that time gold was at premium over
silver of about 20 per cent.
F In 1885 congress passed law that made
paper money legal tender for all debts,
the paper to be payable in gold or silver at
] the option of the governments this being
an attempt to make silver at par with
gold
This was an impossibility, for at once
the gold all went out of the country, and
the government was on gold basis in spite
of its efforts by legislation to keep gold and
silver at a parity. From that time to this
there has been no gold in circulation in
Colombia.
The effect of this was to raise the pre-
MUM on gold from 20 per cent in 1885 to
100 per cent in 1895.
AT the present time (June 10 exchange
on New York is 40, the price of exchange
depending wholly upon the number Of
drafts upon the market and the demand fol
them. As the coffee crop is being shipped
at this time, and the merchants for certain
reasons are not importing largely, the price
of exchange is low.
In the department of Panama papel
money is not used, silver being the only
medium of circulation, the result being tina
silver IN the other departments has entlrel.
gone out of circulation, and paper is thu
only money used.
If one goes to market in Bogota and of
fers silver for his dinner it is refused. Al
exchange is lower in Panama than in otl,e
parts of the country spectators buy all tn
silver they can find at a premium of from
to 10per cent and send it to Panama AM
make profit. Now, to show the effect O
this upon the people of Colombia, | vii
give certain facts that are well authentl
, Gated.
In 1885, when gold was at premium O
20 per cent wages of workingmen on tn
plains of Bogota were 40 cents day, ant
in the hot country 60 cents day. At tn
: present time wages are 60 and 80 cents rt
spectively, an advance OF 90 per cent. AL
provisions have increased In cost about 90
per cent. Meats at that time were sellin
for from IL to ID cents per pound; at tn
7 present time they sell for 40 and 30 cents
House rents have increased from 100
200 per cent. Small tenements, such a
poor people occupy, could be had in 1SS
for s. month; now the same tenement
e bring IS. In 1884 and 1885 the Protest
, ant minister of Bogota occupied a house
for which he paid $50 a month; at th
present time the same house brings $500
f: month.
e In 1885 table board could be had at th
best hotels for 81 day; now it is s2
!. day. and the proprietors all say there
$ much less money in the business than whe
they received 81. Wearing apparel b