The Sauk Centre herald., 1896-07-30

bia, S. A., has written letter whicl
gives an exact picture of the effect O
introducing silver into that country.
Theletteris as follows:
BoGoTA. June II, 1896.
To the Editor OF the World: AS TIL
money question seems to be.the import
ant question in the present politica
contest in the United States, thorgh
it might be of interest to the man,
readers of the World to know wha
effect silver legislation has had upon th
people OF Columbia.
Twenty wears ago, in 1876. gold ant
silver were coined in the mints of Col
umhia, both being legal tender for al
debts, and at that time, owing to the
scarcity of the white metal, silver was
at a premium over gold OF about 8 pc,
cent.
About 1880 gold was at premium
because the imports exceeded the ex-
ports, aud as the balance had to be
paid in gold it required a small premium
to get the gold for the purpose. Up to
1885 the government continued to coin
gold and silver, and at that time gold
was at premium over silver of about
20 per cent.
"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 govern
ment; 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 coun-
try, and the government was on silver
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 Columbia.
"The effects of this was to raise the
premium on gold from 20 per cent in
1885 to 100 per cent in 1895.
"At the present (June ~ exchange on
New York is 40, the price of exchange
depending wholly upon the number of
drafts upon the market and the demand
for them. As the coffee crop is being
shipped at this time, aud the merchants
for certain reasons are not importing
largely, the price of exchange is low.
"In the department of Panama paper
money is not used, silver being the only
medium of circulation, the result being
that silver in the other departments has
entirely gone out OF circulation, and
paper is the only money used. If one
goes to market in Bogota and offers sill
yer for his dinner it is refused, An ex-
change is lowerin Panama than in other
parts OF the country, spectators buy
all the silver they can find at a premium
of from to 10 per cent, and send it to
Panama and make a profit. Now. to
show the effect of this upon the people
of Columbia. will give certain facts
that are we'll authenticated.
"In 1885, when gold was at pre-
MUM OF 20 per cent, wages of working
men on the plains of Bogota were forty
cents day, and in the hot country six
ty cents a day. Al the present time
wages are sixty and ninety cents re-
spectively. an advance of fifty per cent.
All provisions haye increased in cost
obout 200 per cent. Meats at that time
were selling for from twelve TO fifteen
cents per pound; at the present time
they sell for forty and fifty cents. House
rents have increased from 100 to 200
per cent. Small tenements, such as
poor people occupy, could be had in
1885 for $500 a month; now the same
tenements bring $500. In 1884 and
1885 the Protestant minister Of Bogota
occupied honse for which he paid $50
a month; at the present time the same
house bIings 5000 a month.
I'm 1885 table board at the best hotels
could be had for ST a day;now it is So
day and the proprietors say there is
much less money in, the business than
when they received$1. Wearing apparel
hasno increased in price in proportion
to provisions, but this is because the
people are too poor to buy the goods
they, were in the habit otswearing before
and the meI chants have placed upon'th
market the poorest, quality Of good.
made ia Europe for the trade. Ths
reason that the merchants give for .no'
buyihgmore g6odssih the United State!
is that the goods are too good and til,
people cannot afford to buy them.
1T seems to me that if the working.
men of the United States will study tlii
object lesson t hey will readily see tina
what they want is an, honest dollar tina
will buy as much in the markets abroad
as ths.iollar of anv other patton. t
"ffsiiver is coined in the United State
at the rate Of 16 to J., while the gold in
gold dollar is worth 100 cents in an,
country in the world, and the silver in |
silver dollar is only worth SO cents, is j
not plain that the experience of Colombia
,~d q, 4ac% oII SoufI Anefic an c0t,n trie,