New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-24
URUGU4Y'S FINANCES.
United States Might Profit from the
Little Republics Experience.

washington May Is (speciaD.-A lesson In finance
,.-,snh Senator Aldrich and his Colleagues Oh 'he
ssnste Finance Committee may nave Z" 'ahe i"'o
..-sops consideration at their summer conferences
., uavs and means to meet the demands OF ule
,-,-r Cor an Increased currency is brought 10 the
r-,;tes States fresh from the little South AmeTl-
ian republic Of Uruguay by Colonei Aloert W
sxa,r1 who has for the last six years been the
United States Consul at Montevideo. Colonel swami
-. ,o,, bnsn nronoted by transfer to SouthaInp-
90, and reported the State Department To-Day
on the way to his post In company VII" NIT
Swain -
&c Colonel Swain is an old resident OF Iowa anu
personal friend Of Secretary Shaw, he called on
.ea latter AZ the Treasury Department Incidental
" he explained the fiscal system OF Uruguay 70
The Secretary while the latter took his oTeath III
gasps both because of the mover character anu SUE
cess Of the plan.
First EXPLAINED Colonel Swain, Uruguay
maintains an absolute gold standard she mas Done
This for the last forty years. and she Is the Only
South American country which has NOT mao n'oi1e
tarv troubles This is how she does 1t Every golo
co;n in the world is made a legal tender for Gus
toms public debt and private transactions 1hese
coins pass exactly at par, or at the NsAne tiieS
have in every gold standard country Uruguay mas
no gold coin Of her own. She has limited SILVER
coinage which is maintained at fixed rauo on d
psr with gold, and which is made legal eenoeI
for sums less than SIC With this system golo
flows into Uruguay. just water VIII mo It's le'ei
When interest is high o apd there eS is when this
demand ceases and the gold is needed elsewhere II
goes 10 that locality just naturally as a pro OF
rsassage leaves the cold for tbs warm climate
You don't have TO buy exchange IN OIusuay.
ADx rol6 coin passes current with the shopkeeperS
end IN all business In each store there is pesteo
s table giving the denominations and values OF the
gold coins Of every country. and THIS coin Is d.
cepted without the least hesitancy. -,
ssThere is a government bank, which IS aulnoi-
ICED to issue certain amount OF paper
This currency is redeenable in COLO IN sums
of not less than SO The bank Is authoilzeo 10
redeem IT'S notes IN the gold coin or any country
which II NAV have an its vaults -,
Now" continued Colonel Swain, why WouIu
that system work just as wen IN TINS couIII t
Sc "a Uruguay There would be no reason why
the United States should discontinue 10 com Us
own gold coins But is there any reason why the
gold coin of other nations should not be MADE
tender this country me Wnoie theory %
the soundness Of the gold standard is based on the
If this Is So and there is questioning the 1act
n does not make any difference what mint marx IS
on the gold that the quantity OF the metal con-
fatned in the is known, and this could easily
known through a little study Il the VARIOUS gnu
coins Of the world
with All of the gold coins Of the world as
legal tender the United States, there would never
he a real demand for additional money for crop
moving that would be instantly met by an IN
flx OF gold coin from other nations. The slight
would bring the metal to the place OF demand
without the slightest delay and when the demand
was over the gold would naturally seek other quar-
ters where its earning capacity would be greater
Colonel earnest about ms theory,
asks what the objections the adoption OF such
man has been put into practical and successful
operation in Uruguay, and there is no money ques-
ton IN that country. never has BEEN and from the
success OF the present system never will be.