The Jasper weekly courier. [volume] (Jasper, Ind.) 1858-1922, 1898-04-08
The Monetary Problem.
CHILpS EXPERIENCE.
No Exception to the Rule-Cyciono
of Disaster Always Follows Gold
standard Contraction.

ments on the cyclone OF disaster which
always follows gold standard contrao.
ton in "a most graphic style. IL wiz
be remembered that Chilli few years
ago had sound financial policy, using
gold. silver and paper as money and
advancing more rapidly in wealth and
prosperity than any other South Amer
lean country. She came out OF heE
war with Peru and her civil war as
cheeky and rs impudent as Japan was
after her victory over China. Japan,
as il will be remembered, was on the
high road TO an advanced position
among the great nations of the world
when she committed financial hari kari
by adopting the gold standard and now
is in state of bankruptcy and liquida-
ton. The condition of Chill is pre-
cisely similar. The following is the
article in question, translated for the
Silver Knight by A. NJ Soteldo:
Two years have already elapsed since
gold has taken the place of paper money
issued by the states and the banks.
Gold has remained in circulation as
money, but not as an evidence OF wealth
or even welfare, but on the contrary,
as an expression of poverty and parali-
zation of every kind of business.
The scarcity of products. to draw in
payment of obligations in Europe, has
forced the banks. in order to avoid tho
export Of speces-the circulating gold
and the consequent weakening OF
their chests, TO series of measures OF
restriction.
Asa consequence three orders of facts
have been produced intimately bound
among themselves, and properly being
each one the consequence of the other;
scarcity of circulation, depreciation OF
values and higher rate of interest OF
money The type Of interest from
seven to eight per centum. which was
ruling four years ago, has advanced to
70 per centum.
This situation is to n great extent n
consequence of the imprudencc with
which the conversion OF gold for the
fiscal and bank bills was effected. At
that time all circumstances were adj
verse, as they continue to be. up to the
present day. allowing no chance for an
easy transition from one regime to
tho other.
In the commercial order our produc-
ton was restricted. both in quantity
and value, and that in no small part due
to causes of n universal characteristic
constant decline of our products in Eu-
rope.
|, In the moral order we were just
. emerging from civil war, which had
, profoundly shaken our credit. on nc
count of the losses sustained by for
: c;Cn capitalists in their Gillian invcr-
sions in movable values, by the lowest
type OF the money in which they re-
+ ceive their interests. Besides. in this
same order of antecedents, we live and
still live in precarious situation in
, regard to our relations with the Argen-
tine Republic and the boundary ques-
ton between the two countries.
: Once the gold thrown into circula-
, ton the natural tendency was to con-
ceal and export it. Only by means Of
higher interest could be secured, in
, part. its return to the banks and cir
culation as money.
; The stringency produced has natural
" affected private parties and those
institutions of credit which were found
in n weaker condition. Among the lat
q ter the banks. weakened in advance,
have been unable to withdraw it,
al At the time Of the metallic CONVEX
sion there were in existence in the coun-
try 90 national banks of emission and
. discount. with paid capital Of $4,000
; 600.
> After two years of this new regime.
! ten of them have either failed or been
put in liquidation.