New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-08-21
GOLD STANDARD IN PERU.
THE FREE COINAGE OF SILVER ABAN-
DONED
TUT CHANGE HAS PROVED BENEFICIAL TO THE
coUNTRY-GREAT BRITAIN HAS THE Li'N
SHARE OF THE TRADE WITH PERU

rrJF CHANGE HAS PROVED biENbr i>i-NH ~ "
cor-NrRY-GREAT BRITAIN HAS THE LIONS
SHARE OF THE TRADE WITH PERU
lima Julv z-Ilke her nearest neighoor' the
-enuhl,c Of Ecuador the Government OF feru nos
recently adopted gold STANDARD anu =
rencv is now issued on that basis. Inc So.
SILVER coin. which until recently mas peeh VIC
standard is accepted at or near its a0' -
va,,e-or at n ratio OF about thirty-two 10 on,
,nd &c now redeemabie for 80 cents in gold athoush
a, contains the same amount OF silver as 'he
standard dollar Of the United states the s"'i. -
Ecuador and the yen OF Japan Inc Hoie' W. :,
contains the same amount OF golo as '"o p
sterling or 81 81 in United States money ~"
and hereafter will be the standard. len si'ef
- r,ata ono HIRE ten reals make one so
Tho coinage of silver has been stopped Inc
Mint ,s entirely occupied In the coinage OF Eoiu
PAPER money is obsolete. The common curry"
e stiIi silver which is awkward ana mcoh'ehie"'
hut the new gold coins are gradually COMING '''o
circulation as the volume increases. although tne!
90 st,n hold az a slight premium that is due more
- ,beir convenience and their scarcity .tnan ior
any other reason There are no banks IN 'he II"
,orior and the use Of checks. or "chits' tha' are
so common in the Eastern countries, is almost UNI
known. The traveller who is going into Inc III
,arior for Measure or for business Is compelled 10
carry coin with him. and If he takes silver he mas
TO hire an extra horse. Therefore there Is al
active demand for gold. and the people VINO heeu
:, are willing 10 pay something for the advantage
1t brings them. IN, 49,.
Peru has had a remarkable experience Win us
currency The people here know all ABOUT Iia'
money for after the war with Chill ana al oNher
times when revolutions have been under way the
.,ountrv has been flooded with rredeemable paper
which has often passed current as low as q anu
A cents on the dollar. The most serious cilsis III
she financial history of Peru followed the war WIN
chin in ISL The Government had issued millions
10 ma
and 10 purchase supplies for them. and. notwth-
.,onainp the desperate efforts that were made 10
.enpnort its value, II kept growing weaker anu
sneaker until finally merchants ana narhe'"ieh
refused 10 take II at discount or 70 per cent
PAPER MONEY PRACTICALLY REPCDlATED.
Pierola the present Executive who was dictator
issued a decree declaring the paper currency ieeai
sender for all transactions. and threatening I'M
,risonuent and other penalties TO tradesmen VINO
refused IT, At the same time, the Government IN
SISTED upon the payment OF custom duties and
other taxes in coin, and long as It would not
.ccept its own money the merchants concluded
no follow its example Three or four were ar
rested under the decree and thrown into prison
The remainder marked up their goods sufficientiy
"a cover the discount. and demanded 81 a pound
for beef IS cents a pound for sugar ana sloo III
xtead Of S. for pair OF boots.
When Pierola went out of power there was some
slight Improvement, for constitutional Presi-
dent was naugurated, Congress was called TO-
gether and a serious effort was made 70 reorganlze
.he Government and the finances. But the reform
did not last q great while and the paper money
was still heavy load to carry.
Antero Aspellago. the Secretary OF the Treasury,
who is now president OF the Institute Technico and
chairman of the Commission 70 the French exposi-
lion decided 10 knock the dragon In the neao.
The Government did not want 10 make record OF
Reputation, but there were other ways 10 get rld
of the obnoxious currency. The opportunity came
when the intendente of Callao was called upon to
,rrest a merchant of that city for refusing to
cent payment for purchase In paper money. he
,,elegraphed TO Lima for instructions. Aspellago
-,elegraphed back that the police authorities had
nothing to do with the case, and must not inter-
,fere This ruling was instantly puehshed over 'he
entire republic and solved the problem In few
avs for ~ neope could not be arrested for refus
ing 20 take the fiat money, Of course they would
,efuse So the merchants all over Peru, with one
accord, demanded silver or gold from every pur-
chaser, and the Government turned It's BACK ana
CLOSED its eyes
The banks had long ago declined to accept paper
money on deposit There was small riot at the
market in Lima because the hucksters would not
receive paper in payment for meat. potatoes and
bread but the police refused 20 interfere, ana IN
few days the public settled down TO the CONVICTION
that paper money entirely worthless oome
,temonstrative persons made bonhres of the cur
Abe situation without protests or objections, and
,aaper currency became obsolete In Peru.
Since then silver soils have been the circulating
medium. The mints were kept busy coining money
for the miners at the rate OF about SiONpV~
week and the coins exported in order TO
eyade an export tax on bar silver which was per
cant of its value. There export tax on
COIN and the fee OF the mint was per cent, so
that those who took advantage of this method
made profit Of per cent. About 10000 in silver
IS absorbed by the people Of the interior every year
Much of it is used TO manufacture ornaments.
More is buried in the ground for safe keeping, be
cause there no banks and the tax gatherers
ARE always on the lookout for their prosperous
fellow townsmen. AS long people have nothing
IT is no use TO assess them for taxes or call upon
them for parish dues and. therefore, when a peon
gets hold of an extra silver dollar he hides it as
quickly as he can.
AN ovERsUPPLY OF DErnECIATED SILVER.
After the fan In the price of silver and the close
of the India minis, the miners of Peru looked for
copper and have made great deal Of money
from the metal. The silver coined and exported
have described paid the expense Of operation and
transportation and the proceeds Of the sale of the
copper have been all velvet" Nearly all the
mines that are in reach of transportation facilities
have continued operations. Backus & Johnston
two Americans from Cleveland. Ohio have estab-
iished large modern smelters at Clssapalca,
the terminus of the famous Oroya Railroad. The
smeters under the direction Of Henry Guyer.
who came here from Montana two or three years
ago. They have been shipping large quantities Of
silver and copper both to Europe and the United
States The total exports In 1898 were s9.4sl 2S.
which was an increase from s. .5s7 the previous
, year.
s When the mints closed TO silver coinage two
years II is estimated that there were 4.50O0
silver soils in circulation and decree was issued
prohibiting the importation Of those which had
been shipped out Of the country. The custom
house officials required to be very vgilant in
this respect, but no doubt considerable quantity
has been smugged IN by travellers. for sole to-day
are worth per cent more than their bullion value.
1t Is the intention OF the Government 10 suspend
silver coinage until the soils in circulation
duced 10 100000 less, and thus force gold into
the hands Of the people. In the mean time the