, 1892-09-28

show the evils of that system. A retail ira
der, say, has fixed his prices when the Next
can dollar was at so cents but a few days
afterwards he learns that it has gone down
to 70; what can he do? He cannot make a
general change in his prices, and if he cannot
afford to put by his Mexican money in the
hope of a rise (which, by the way, might not
GOMEZ, he mus st take the 20 cents, which the
banks or the brokers will give him. Perhaps
at the same time a customer walks in and pays
a long standing account, accommodating from
the time that Mexican stood at IS or 80 cents.
The dealer has to accept the payment, al
though by so doing he must put up with a
loss Of perhaps 30 per cent or more. He may
have to smile and to thank his customer, but
there is bitterness in his heart.
From the latter illustration it will be seen at
once that there was something demorallzing IN
the existence of such a Auctuating circulation.
There was always a temptation toipay accounts
in q time of depreciation of the Mexican cur
rency and thus escape in reality part OF an
honest debt. The qualification, OF course, was,
that the bargain had been made IN Mexican
money. and Just as the merchant would have
gained by q rise in that money so he must be
content to lose by a fall; which is true enough,
but at the same time is unsatisfactory, as In
PRODUCING kind of petty gambling into all
transactions. Moreover, as the falls IN the
long run predominant, the dealer must ultl-
mately be the loser. Some two or three years
ago. it was proposed to remedy the evil, either
bv inducing the Government to Tx the local
value of the Mexican dollar or getting it fixed
periodically by a committee of merchants.
Very little reflection will show that neither OF
these expedients were possible. AS soon as
the Mexican dollar in New York fell below the
local price, it is plain that all persons hay
ing large use for money would import 1t,
hence there would be more In the island than
was required, and no resolution, whether lssu-
ed by Governmental by a committee, could
thus prevent it's falling. 1t is no more possible
for the Go vernment or a committee to regu-
late the price of Mexican silver than it Is for
the same parties to regulate the price Of tea,
coffee or any other commodity. There was
only one thing to be done, and that was to
treat the Mexican dollar simply as a COM
modify, which would be bought and sold
at its worth, but not accepted rs a standard
in commercial dealings. This obvious course
has at last been forced ON the people OF st.
Thomas by the recent great fall III the price OF
silver, and by the revelation that there were Sc
rious evils connected with the token system.
The return to the authorized circulation aud 70
a gold standard, has. however, as we we'll know,
not been unattended with difficulties. 1t Is
not only among the coal porteis that these &C.
cur, but in very many relations OF life; where
ever, in fact, there are money transactions,
comes in the question, how are We to act IN
the new state Of things. There are a few
people in St. Thomas, who although Obliged
in some Of their daily transactions TO join in
the general stream, have never paid their SER
wants and employees i'll any money but Danish,
and these persons of course, have IN that de-
partment, no trouble now. They simply go
on doing as they have always done. Such
cases are, however, the exception, not
the rule. In the majority Of instances,
either he payment has been allowed 10 slide
into payment in Mexican money without any
thing being said about il, or an agreement has
been made to serve for so-much in Mexican
money. Now that offers are made to pay the
equivalent in Danish money, which LOOKS less,
thore is dissatisfaction. Said an old man, who
was rendering q small service, THE master used
to give me a dollar a week regular, but when
I sent the old woman for it on Saturday he
sent ms 80 cents. I reckon he has stopped
twenty cents of my money; and this is the
general feeling. OF course the matter is be-
ing gradually understood better, as it is found
that most of the necessaries of life are "cheap-
err in Danish money; and SO far as we can
learn the retailers have behaved fairly in this
matter, lowering their prices in proportion to
the increased value of the currency. Ii COM
----L III -~4 o,~~o1A 4hre OOYn