Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-29

dollar of paper, and pays out gold In
limited way to support that ratio. 1t does
not. however, pay 1t out freely, but only
with view to minimizing fluctuations. The
country Is prosperous and the government
is becoming forehanded and looks to the
actual resumption of specie payments on
the above basis in the near future. On
January l, 1904, 1t held SS,241,147 of coined
gold in its conversion office" and has prob
ably Increased this amount within the last
year. There Is continual talk about fixing
ths date for actual resumption.
After paper money regime of some
years. continued Mr.. Roberts, "Chile
sumed specie payments January l. 1898. but
before the close of that year the prospect
of war between Chile and the Argentine
Republic caused a financial panic. a run on
the banks, and suspension of gold pay
ments. January l, 1902, was set as the time
for resumption. but when that date was
reached 1t was postponed and has remained
postponed ever since, although the varia-
tons of the currency from par are small
when compared with other South American
countries.
Brazil has an 1nconvertible paper cur
rency, with gold worth about PIG at the
date of the last report, about year ago.
The government has a stock of gold report
ed to us In 1902 as $4,000 600 or about
per cent of the outstanding paper circula-
tior. at that time.
Il am without accurate information about
Venezuela. but understand its monetary
condition to be fairly good. 1t Is not on a
paper money basis. The common currency
of the country is silver, coined on govern
ment account, and 1 understand 1t to be
at small discount compared with gold,
but cannot say certainly that this is so
I'm Paraguay the money of Argentina Is
legal tender and is the common currency
Bolivia has the single silver standard with
free coinage, and is, l believe the only
country left. outside of China and those
in Central America, which has the single
standard.
Colombia Is In a swamp of paper
ol,,Ia
of January, 1904, the outstanding issue of
government notes was S63S. 59S. 5S1 and of
bank notes $102, 449. 445. These were the
figures reported by the government. but the
makes a side remark that the issue is
probably twice that reported. The lowest
exchange on London during the year 1903
Is reported to have been 5000 per cent, and
the highest 25.0O0 per cent. In 1903 the
congress of Colombia passed a gold stand
ard act, establishing gold unit, setting
aside certain rents and other items of in
come for the fund to be set apart for the
retirement of the outstanding paper
Mexico's Preparations.
Mexico began preparations for the adop-
ton of a gold standard more than two
years ago. and the success of the plan has
been largely due to the energy and ability
of Mr.. Limantour, the secretary of finance,
and Enrique Creel Of Chihuahua, one Of
of the republic. These gentlemen. in con-
nection with a monetary commission from
the United States. visited the various capt.
tails Of Europe. conferred with ministers of
finance, bankers and other persons inter-
ested in the subject. and after their return
to Mexico made a report which satisfied
President Diaz and the congress that a
change to the gold standard was not only
feasible and advisable, but necessary to the
future prosperity of the republic. Shortly
after assembling In January. the Mexican
congress placed the whole matter in the
hands of President Diaz to bring about the
reform at the first favorable opportunity,
and by the best means he could devise; con-
ferring upon him, as I have said un-
limited and extraordinary powers to meet
any emergency. Under that authority he
has issued a decree fixing May l as the
date for the change, suspending silver COIN
age and forbidding the further importation
of silver dollars into the country
The effect upon commerce In Japan and
other countries which have recently adopted
the gold standard has been beneficial. 1t
introduction of foreign capital, which is
the greatest inducement that has led to
the reform in Mexico. The largest industry
In Mexico Is the production of silver. and
the effect OF the change upon that industry
will be watched with great interest. The
expense Of production will doubtless be in
creased for it will have to be paid in gold
and It will be impossible to prevent the
fuctuation of silver bullion. So long as the
mine operators paid their expenses in sill
yer 1t was like giving share Of the crop
for the labor cf production and the expense
of mining varied with and was governed
by the volume of the product. Hereafter
1t will be fixed and regular, like that Of
any other industry, and Is likely to increase
as the tendency of wages and the cost Of
living Is upward in Mexico as 1t Is every
where else. Silver becomes commodity,
like corn and coffee. It's decentralization
is not expected to reduce the demand. but
rot Inr IN frnr i1rof davu n
for copper and other demonetized metals
has been developed by the enlargement Of
industry. =.
Adjusted to New Conditions.
Mr.. James w. Malcolmson. an expert.
tells the Engineering and Mining Journal
that financial operations In Mexico have
already adjusted themselves to the new
conditions. and today exchange which
would normally be about 282. il 2O2. or al
most exactly what It should b after the