A STUPENDOUS SCHEME

Ashburton Guardian, Volume VII, Issue 1655, 6 September 1887, Page 3

A STUPENDOUS SCHEME

RUNNING -A NATION. ' It has been pretty well known thit •T«c linoe the conclusion of the late disastrous war wltit Obill, Pera has been In a state of otter collapse ; but exvotly hew severe this collapse baa been Is cot generally appreciated. The coinage of the repabllo has been debated to inch an extent that a allrer dollar is not worth 75 cents, and dollar bills are exchanged at the rate of seven for a silver dollar A short tine ago the people were so depressed and disoonraged that they began to relapse Into a semi-bar barlo state cf ldlemeis. The prospeots were so ominous thai the Peruvian Government actnally offered a premium to all resident manufacturers and employers who patronised native labor. This, m a country so rich In minerals and so fertile m soil, §nd once to prosperous, was a most deplorable •tate of affair*. But with a population of scarcely 3,000,000 and such remarkable natural wealth, it was not to be expected that Pera would be allowed to drop out of commercial importance entirely, A number of English and American capitalists who hare seen the country and understand Its capabilities hare formed a company ostensibly for the purpose of rescuing the place from debt and restoring its credit. This will undoubtedly prove a good thing for Peru and Peruvians, but the scheme — In the bands of such men as Micbael P. Grace, brother of the exMayor of New York— is very little short of a second Walker filibustering expedition. It may be seen at a glance that, by the terms of the contract, an abstract of whlob is given below, the bondholders of the Peruvian Government virtually sign sway the country, and place it entirely In the hands of foreigners, who jmgage to conform to and be guided by the Peruvian Constitution m all matters. The depth of this scheme may be judged by the fact that the company has undertaken the colonisation of certain lands, which simply means that they will import families of English speaking people, whose Interests will be carefully bound up with their own, and upon whom they can rely, If the necessity occurs, to enforce the power and policy of the company Another significant fact is that the English language is now being taught — mainly through the influence of Grace and Oo. — In some of the schools, instead of Spanish. Under these circumstances, it is stated by several Anglo-Peruvians m this olty that It will not be long before Ohili suocumbs to Peru, and the power of the company ie extended into that country. Without a doubt the scheme is one of the most stupendous of modern times, and considering the chances of making fortunes there, it wilt not be a matter of surprise if a rush thither lets m. At the present time it Is not possible to obtain the names of the progenitors of the company ; Michael P. Grace is, however, at the head efit. A brief summary of (he contract, which is now awaiting the ratification of the Peruvian Congress, is, as nearly as can be obtained, as follows :— For the period of 66 years the company contracts to operate and extend the railroad lines. The company engages to pay the Peruvian Government 260,000d0l immediately upon the signing of the contract, and 1,750,000 dollars In Instalments of 50,000d01, com■MDclng 30 days after the delivery of the 250,000d0l aforesaid. To deliver three months after the signing of the contract at least 70,000,000d0l In bonds of the debt of 1870-78 and the whole of the debt of 1669, with their respective coupons ; to establish a bank at Lima (the capital of Peru) with branches m certain cities (the capital to be 5.000,000d01, and the Government to receive 35 per cent of the I profits of the bank ; to consolidate and loat the principal and interest of the national debt ; to operate and explore certain mines and coal Industries ; the Government to receive 20 per cent of the net prpfiti from the working of the railfoadf. The amount to be received by the Government is not at all unreasonable; bat daring the next 66 years the company will doubtless be deeply Interested m the formation of the Government, so that its liberality will be made to reflect back upon KtelL It is not Improbable that Mr </Gfftw will become one of the rlohest men In tip world. It has been the privilege of few men In modern times to possess a whole ' rtatlop,-*" $«Q JTrftaclßpo News Irtttir."