The San Francisco call., 1899-01-01
AFFAIRS IN CHILE.
a Marrow Escape From Political and
Financial Disaster.


ANS we'll that ends well, vet there is
no getting away from the fact that
Chilli has had.a narrow escape from DO
litical and financial disaster. Writing
from Santiago ON the morrow of the
arbitration agreement, signed on Sep
temper Y. one of our correspondents
says: Now that the longstandfng dis
pute with Argentina is in a fair way
toward settlement we shall be able
to set about ecOnOmizing on the enor-
nous expenditure for armaments, and
an incubus will be lifted which has
been all but sinking the country Our
WarIlke preparations seem to have been
considered in Europe reprehensible,
not to say suicidal, and Chill has been
recommended to sit with her hands
folded and sell some of her expensive
lronclads; in response to this beneVo-
lent advice I would quote the Gillian
proVerb to the effect that a madman
knows more of his own affairs than
sane man does of other peoples Our
only way to prevent war and to oblige
Argentina to accept arbitration was to
arm to the teeth and bluff for all we
were worth"
Since the foregoing candid opinion
was penned the troublesome outstand-
ing Pun de Atacama question has been
practically shelved, the Chilian Senate
having by an overwhelming majority
approved its reference to a joint COM
mission. with appeal to the United
States Minister II BuenOs Ayres, as ex-
clusively announced a fortnight ago in
these columns. The Puma issue. bv the
way, is rather of d political than of
purely geographical character, depend
ent on the Interpretation of different
treaties, and uncOmplicated by water
divide" considerations, for the suffi-
cient reason that water is conspicuous
by its absence in the region The lat
est item of intelligence from South
America, coupled with the continuous
fall in the Buenos AyreS gold premium
is undoubtedly the most important yet
to hand. affording as it does practical
proof Of the subsistence of the antagon-
ism between Chill and Argentina The
decree ordering the mobilization Of the
Chilian National Guard has been with
drawn, and it is to be hoped that the
good example VIII promptly be followed
on the other side Of the Andes thus en-
abling both republics to enter on the
path of retrenchment urgently required
by their finances The Cabinet crisis
and ministerial designations recently
cabled from Valparaiso would appear
to have existed only in the imagination
of certain CORRESPONDENTS: at all events
the portfolio of foreign affairs remains
III tle ndHuS OF AQrnlrdl L9tOrre (tWice
reported to have resigned), to whose
admirable handling of the boundary
negotiations the present improved sit
uation is to a great extent due.
AS with Chili's external relations so
with her finances; the black cloud
having lifted from the former, an i'm
mediate Improvement may be expected
in the latter. the strain on which would.
If continued. have reached the break
Two iYot Il.
ment of "eXtraordinary' expenditure,
the country's revenue being fortunately
comparatively unaffected by the depre-
citation of the currency and amply sufTi-
cient to meet the normal requirements
Of the state. The customs receipts.
forming -fourths of the Chilian
revenue, amounted in the first eight
months of the current wear to $36 031. :
969.02. against $94. $40. G1o o4 in the cor
responding nerod Of 1897 being an in
crease Of s1.1S9. 354 0S. and the export
duty on nitrate in the remaining four
months will weld A further increase of
AO0O.on0. With the aid Of the new
taxes (amountine to. $40 ono 0oo) referred
TO In Mr.. Salas Edwards. official prob
lematical surplus. brought forward
from 1898. the Minister of Finance
shon'd Cossiblv be able to nav off the
Hoatfn9 debt next vaar and start the
twentieth century with cIaan sheet
a new dav is dav-nirp for Chill. If onIv
her sta tesmer will ohev tho dictates Of
financial prudence.-Pal Mall Gazette