The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-04-16

10 ner cent ia 1864, and nearly IA per
| cent in 1865 when we had a deprecia-
| ted currency; and gentlemen, the force
| III this illustration is greatly augment
ed by the facts that these reductions
ia the rates of wages occurred at a
time when several hundred thousand
Iaborers had been withdrawn from the
field Of competition. when the govern
nent was engaged in the prosecution
of q great war, and was expanding
money lavishly for all kinds of sup
plies for the army and navy, and when
the prices of all the products of labor
had largely increased. Surely, il there
ever can be time when an abundance
Of cheap money will increase the wages
and improve the condition of laboring
men, these results ought to have been
accomplished under the combination
of favorable circumstances existing,
especially in the great centers OF in
dustry. from 1861 to 1865, and yet there
has been no other period in our his
tory when the rates of wages fell so
rapidly or so low.
ssThe recent experience of the Repub-
lie of Chill furnishes another impress
siye warning to the wage-earner
against the evils of a deprecated cur
rency. That country had for a long
time the so-called double standard of
value. with coinage of legal tender gold
and silver at the rate 1859 to !, but as
this was considerable under-yalua-
tian of silver, the coins of that metal
went out Of circulation and gold con-
stituted the medium of exchange and
actual standard Of value until about
the beginning of the year 1876; but as
soon as the commercial value of silver
fell below the ratio of 1850 to as COM
pared with gold, all the gold went out
Of circulation and the country had sli-
yer recommendation. In 1879 before
This change took place. the peso, or
dollar of Chill. was worth about 1914
cents in our money, but in 1859, ten
years after gold went out and silver
came in, the peso was worm less ellaii
81 cents in orr money SILVER con
tinued to depreciate, and, besides. iais
amounts of paper currency were issuet,
by the government and the pahks' anu
in 1895. twenty years alter Inc cLlahse
from the gold basis to the SILVER nasls'
the Deso was worth only about 54H2
cents in our money. Let us see, hoW'
what effect this cheap money nag upon
tha wages of labor in that country.
0ur Minister cit Santiago has very re-
Gently made an official investigation
and report upon this subject, Whlch
has not vet been published, from wnlcn
II appears that in the northern part OF
chill where labor has always been III
greater demand than elsewhere, on ac-
Count of the great nitrate fields located
IS that section of the country, very
little change took place even IN the
Nominal rates Of wages, n0twithstand-
mo the great fall in the value OF the
currency. that is, laborers continued
to receive in deprecated money
abo4lt the same amount they
received before in good money.
IN 1878. when the peso was worth ools
CENTS a mechanic, boiler-IlakeF, e
blacksmith, a carpenter. fireman ami
an ordinary laborer received bogelhef
for d days work 1874 pesos, or Slb.'51'
il orr money: In 1855 the same per-
sons received for the same work IVA
resos. but owing to the depreciation
az the currency, this was equal to only
SIC. 90 in our money; and In 1895, TWEEN
tn wears after the country had descent
ed to a silver basis, the same la0orefs
received for the same work 25.9o pesos,
but the value Of the peso was less than
81 cents. and consequently their wages
amounted to only 1884 in our money,
or lust about one-half OF what they
had received twenty years before. IN
the central part Of the country the re-
sult was substantially the same,
though not quite so injurious to the
laborer. In 1875 days wages for i've
men. a mason. carpenter, a gas-fiutef,
PAINTER and an ordinary laboref,
amounted altogether to S6.45, in our
money. but in 1885 the wages of the
same men were 1888, and in 1895, S4.99.
III the Southern part of the Republic
there was some increase in the nominal
amount 81 wages paid between 1876
and 1889. on account of the fact that 4
line Of railway was then being CON
Strlfctpd through the region by foreign
cauitaI. but since the latter date the
% neral average rate Of wages has re-
l4ained substantially the same, al
though paid In constantly depreciat-
ING currency. Our Minister to Chill,
after a very careful examination OF the
entire situation IN that country, says.
1T may be talSeu for granted that Ia
y As4Atits d@ III d1A 0H&4Gl AA}AA111lNMss
have had a like financial experience,
/ the consequences Of cheap money have
weighed most heavily upon the classes
| that are least able to support the
| burden The evils of silver monomet-
aIlism and deprecated currency
| finally became infolerable in that coun-
try, and, although it produces consid.
| cradle silver and very little gold, i
has recently adopted the gold standard
| of value.
Japan, by far the most progressive
and prosperous country an the East
coins both gold ard silver ait the ratio
| Of 1913 to i, ratio which greatly
| ogervalues silver, and, as the govern
ment does not maintain the parity 81
the two metals, the currency is on q
deprecated silver basis. Wages are
/ raid in silver Of course, because the
| laboring men and women always gel
the cheapest money in circulation, ane
they generally pay the highest prices
/ for the articles they buy, FOR the reason