The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-04
BONFIRES In ARGENTINA.
Paper Money Burned to Get 1t on a
Parity with Gold.

E. Thorn Ely, of Buenos Ayres, Argentine
Republic, who is stopping at the English,
told a Journal reporter an interesting story
last night of Argentina's experiences with
fat money and a deprecated currency. Ar
gentina is on a gold basis, financially, but
the republic issued paper currency, or fiat
money, to such an amount that a few years
ago a national financial disaster was immi-
nent. All the income of the republic was
payable in paper, which had deprecated
until ii took four dollars of it to buy one
dollar in gold. The interest on the national
debt was payable in gold and it was not
long until the republic was unable to meet
the payments. Most of the bonds were held
in England, and in 1899 John Bull stepped in
and told Argentina that she must call in
the bulk of her paper money and destroy
1t until Ii was on a parity with gold, other
wise he would take charge of affairs and
collect all the national revenues, declaring
the republic a bankrupt.
Argentina has therefore been one of the
few places in the world where there is
money TO burn and where ii has actually
been burned" said Mr.. Ely last night in
telling the story. I'm compliance with the
conditions laid down by England the re-
public has had a monthly bonfire in the
to the amount of from $500, 600 to 81, 900. 900
has been destroyed. This work will be kept
up until January, 1908.
ut has been heroic treatment, but John
Bull was the doctor and was in a position
TO force the patient to take the medicine
he prescribed. The result has been that
gold is now worth only S2.32 in paper. in
stead of 81, and it is believed that the gold
and paper will be on a parity by the first
of the year.
II believe that according to the ideas of
Mr.. Bryan and his followers that such an
appreciation of the monetary standard. and
the consequent heroic methods necessary to
restore an equilibrium, should have worked
great ~hardShipS on the masses of the peo-
pie at the great profit of the rich. but such
was not the case in Argentina. The cap
italists are the ones that have suffered.
The bulk of the business of the republic
consists of exporting wheat, wool and
hides. The man who raised these crops
was able to sell them abroad for gold and
pay his laborers in paper at 81 to 81. With
the increase in the value of paper money
wages have not decreased and the capital
list must still pay his laborers 75 cents per
day in paper, and where three years ago his
gold dollar which he received abroad would
purchase five and a third days labor il
will now buy only three and a fraction.
The cost of living has not increased and
therefore the condition Of the masses of
the people has been very greatly improved.
There is one thing about Argentina that
is an Improvement on all other countries, .
continued Mr.. Ely, and that is that we
/ have no poor people there. You rarely see
a beggar and all the people are well clad
and have all that they want 20 eat. The
reason TOT tnls Is lndt every one can have
work and it costs almost nothing to live.
The labOrer who earns 70 cents a day can
live and support a family on % cents OF
that amount and save the balance. The
tropical climate makes living an insignih-
cent item"
Mr.. Ely is a member of a firm that repre-
sents American manufacturers in South
America, handling goods in Argentina,
Uruguay and Brazil. He is in America &c
renew contracts with manufacturers, and
he came TO indianapolis TO close contracts
with two concerns here. He expects TO sal
for Buenos Ayres Dec. 20.
' Mr.. Ely Is a New Yorker by birth. but