Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-06-16
OLD PERU OR NEW
Mr.. Peppers Comments on
the Modern Country.
s LOVELY DEVELOPIN
A REVIVAL OF THE MINING IN
DUSTRY.
The Gold Standard Well Fixed-Presi-
dent Romana's Good Administration
Activity to Prevent the Plague.
special Correspondence Of The Evening Star.

LIMA, Peru May %, 1908.
Old Peru or new? l had to make choice.
A year ago a Peruvian friend had sworn he
would not know unless 1 met him in
Lima with clear conscience. He wants
material progress for his country. An
tiquities, graveyards and mummies tire
him. Instead of the Incas' buried treasure
he talks of coal veins, copper deposits, oil
wells, artesian wells and railroads
In my case the threat has been effective.
Old Peru can wait. The newer Peru, slow
ly but surely developing it's resources,
claims attention first.
Having shown that 1 had not been in
dulging in antiquities it was possible for
me to make the customary inquiries about
trade, industry finances and politics. Some
of the questions answered themselves The
hearty sound of American voices talking
mines tells story of it's own. There has
been a revival of the mining industry, due
to the extension of the railroad which is
pushing from Oroya to Cerro de Pasco,
and one day will reach clear beyond the
Andes and to the Amazon region. This is
the outcome of the purchase of Peruvian
copper mines by the Haggin syndicate.
There are rumors of what syndicates in
the United States have been doing quietly
in the way of acquiring new properties
and preparing to develop them. Mystery
attaches to some of the operations. Mines
and mystery usually go together Some
of the stories are baseless yet this does
not lessen the fact that there is at this
time a definite American movement of in
vestment in Peruvian mines.
The National Finances.
OF the national finances there is chap
ter to be told in a few sentences. Peru
has the gold standard well fixed. This
was reached through travail and trouble,
but 1t stands. No paper currency exists.
Silver has recognized place subsidiary
coinage. 1t is legal tender to the amount
of 800. The sol, or Peruvian dollar, has
bullion value of about Al cents. Peru
now coins gold pound of the exact
weight and fineness of the English pound
sterling. The ratio maintained is 10 soles
to the English pound sterling to the
national gold coin of the same weight and
fineness.
In order to establish unequivocally the
gold standard a silver characterization law
was passed less than eighteen months ago,
and by arrangement with the banks a
given quantity of soleS were called in,
melted into ingots, shipped to London and
sold as bar silver, and the proceeds turned
into gold coinage. Until the explanation
was made L did not understand the mean
ing of a notice posted in the steamer that
passengers could take $40 in silver as small
change when they landed at Callao and
that any amount beyond this sum would
have to be entered at the custom house and
would be melted into ingots at the national
mint at the charge of the owner 1t is a
drastic law but nobody is going to import
Mexican or other silver dollars on those
terms.
The coinage act was criticised and at
tackled, and ii may have worked hardship
in its operations, but the result has been
to leave enough silver in circulation to
meet the needs of domestic trade, while
the credit of Peru has been strengthened
1t was courageous policy to let the prod
ucts of the home silver miner seek their
market as bullion only. The outcome tusti-
f1es the policy.
Industrially Peru suffered during the last
two or three years through the worldwide
depression in the prices of several of it's
chief exports, not only silver but COPPER
coffee and sugar The commercial revul-
sions usually had a political side in the
ministerial crises of the government These
were surmounted in one way and another
and for months past the conditions have
been improving. l have heard some sug-
gestions that both cotton growing and cot
ton mills were developed too rapidly. II
SO there has been the chance for a breath
ing spell. The banks and Joint stock COM
panies are increasing their resources and
reserves, which seems to be pretty tangible
proof of fairly prosperous times The cus-
toms revenues have varied considerably
and the government has had to cut the
budget pretty closely in order to keep with
in the national income but the four years'
administration of President Romano has
shown marked progress in this respect.
The President.
The president himself is one of the most
interesting personalities in South America.
An informal call on him gave me a chance
to judge something of his individuality. A
civil engineer and a landed proprietor
when he was put forward for the presidency
he warned his SUPPORTS that he knew
nothing of politics. After his inaugural ion
the Peruvian politicians found not only
that ne knew nothing of politics, but that
he cared nothing for politics. But he had
clear ideas of administration
IN the midst OF reactionary and ultra
conservative influences he laid down a
IL and progressive policy and stuck to
1t unfiinchingly. Above all, his administra
ton has been marked for integrity in mn
lie AFFAIRS. Peru has been the gamer both
at home and abroad Yet the politicians
sun TAX about the lack of politics in their
chief magistrate, as though 1t were to he
regretted. He has a pronounced sense of
humor and l suspect that he enjoys II
when his friends mourn over the element
winch they think Is wanting in his char
acter.
President Romano was educated in Eng
land He speaks idomatc English and
talks like an American business man. crisp
anu NeiSS- L lie special subject which
brought me to Peru interested him in lis
possibilities for his country series of
pointed questions came like a volley. to be
followed almost Immediately by practical
suggestions. Then he talked of other mat
ters with the opennesS of a fearless man
His four years close in September, and he
spoke OF the significance of his predecessor
and himself both serving out their terms
he meant that the days of revolution in
Peru are passed. whether mere election
broils or actual armed movements to con-
troll the government.
Election Now in Progress.
The national election is now in progress
An understanding of the domestic political
conditions in any country is difficult and
their discussion by a visiting stranger is a
delicate matter. 1 shall keep clear of it.
only reporting second hand and for infor-
nation what is told me by those who have
been here long enough to know. They saw
that the election will be peaceful and will
result In the choice of Manuel Candamo
who is the nominee of the civil and constt-
tutional parties, and also is the business
mems candidate. / could the more readily
credit this statement because while at
some of the northern ports when Col Semi
mario the opposition candidate was there
his supporters told me they did NOT exnact