Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1899-08-18
Country Is Becoming Pros
porous Once More.
THE THREATENED WAR
With Argentina Had Caused Her to
Increase Her National Debt En-
OrmOuSly in Order to Be in Readi-
ness--Danger is Passed.

ponuence OF the Associated PreSs.)-FOr
the last five or six years, in fact since the
melancholy war Of 1891, the republic of
Chile has been passing through a period
of commercial turmoil and political agi-
tat.on. Hampered by a heavy internal
and foreign debt and crushed under the
burden of a heavy taxation to keep up the
strength of her navy in view of the posi-
BILE conflict with Argentina, it has only
been within the last few months that the
prospect has frightened materially. The
disastrous effects of the financial crisis of
July last year far reaching and serious as
they were. have in a great measure been
gotten over, n the credit of the country
is better today than it has been for many
years. Attention is also being directed
to the wonderful resources of the repub-
lie and industries that have long been
dormant are gradually being revived.
New fields for the employment of capital
are also being exploited and general trade
which for years has been in a stagnant
condition is gradually improving.
During the few years the mineral and
other wealth of the country has been al
most entirely neglected, and the home
and foreign debt Of the republic went up
ny leaps anu DOuHOS. Inc foreign QeDt
had RISEN from SAT ,927 900 in 1891 to about
$50, 600, 600 last year. The financial credit
of the country was very bad, and last
year intensified the situation. Nominally
Chile has no state bank, hut there re 20
banks Of issue. The joint capital of these
is put down at $40, S1S, 1929, and the regis
tered issue at $13,44S. 361. This issue is
supposed to be guaranteed by deposits in
gold and government securities in the
treasury. A conversion law came into
force February II, 1895, providing that the
redemption of the PAPER currency should
be effected from June l of that year at the
rate of 81 cents per dollar, and authoriz-
ing the issue of coinage. The outstanding
notes and currency December 81, 1896,
amounted to $15, 1873, 900, nearly $45, coo, 600
having been converted.
For a time the republic struggled nobly
to get rid of its own paper money and es-
tablished a gold standard. But in the mid
die of July, 1898. in Of outra-
geOus expenditures on battleships and
armament, the government could not
meet some Of it's liabilities, and one of
the leading banks found itself in difficult
ties. This soon leaked out and a rush
was made on the Banco del Chile, with
the result that the government, in order
to save the situation, had to order a gen.
eral suspension of payments for a period
of so days. A financial crisis followed,
with the result that another issue of $780,
coo, 900 in paper had to be made, and as a
business Of every character
was greatly disturbed. Exchange fuctu-
ated very much, and the premium on
gold rose as high as so per cent.
A threatened rupture with Argentina
was an ever present spectre of alarm to
the Chilean statesmen. Treaties had been
signed so far back as 12S1 by both nations
providing that any disagreement about
the limits Of territory should be referred
fn tho oJhifJ,of fnn of a frinnH1N VIZ
But, in both republics a military spirit
ran Both governments were
building or purchasing Warships in Eu-
rope, and at home the national guards
were called out and drilled preparatory
to a declaration Of war.
Peaceful counsel, however, at length
prevailed, and about the end of Novem-
Der last both Argentina and Chile agreed
to refer the question of their boundary to
arbitration. All the boundary to the
south Of latitude 26 degrees was referred
to the queen Of England, while that run-
mig through the Puma del Atlanca to the
north, was submitted to a conference of
Chilean and Argentine representatives,
presided over by United States Minister
Buchanan. The award of the latter tri-
bunal was gwen in March. Three-fOurths
of the Puma is in future to be under the
sovereignty Of Argentina and one-fourth
under that of Chile.
nm N.SA-AoA AiPNNa ~ ho
pleased neither side, still a long standing
quarrel about a piece of ~unproductive ter
ritory IS set at rest, and it will enable
Chile to settle down and devote herself to
internal affairs unhampered by the fear
of a foreign war. The other tribunal is
sitting in London, and it's decision is
looked for with some anxiety.
Nothing tended to more bring the coun-
try back 20 it's normal state han the
meeting of President Roca of the Argen-
tine republic and President Errazuriz of
Chile on board a Chilean battleship in
the straits Of Magellan, February Is last.
This act of international cordially soft
ened the sentiments of antagonism
aroused by the threatened rupture be-
tween the two republics, and the agree
ment then practically concluded between
the two presidents will tend to bring into
close and friendly relations the republics
of Argentine and Chile. Daily every
thing points to a lasting tranquility. The
late extravagant expenditure for arma-
ments and ammunition is commencing to
be pared down.
The expenditures voted by congress at
the beginning of February for the current
year amounted to $94, $3.50, 1923. If these
items which are OF a character altogether
exceptional are eliminated. this is about
years. The exceptional items are 10000
coo to form the conversion fun of ST.
a., 444, as the extraordinary loan from the
of London and T%arapaca, and 1852