The times. [volume] (Richmond, Va.) 1890-1903, 1893-07-29
LET Us LEARN A LESSON FROM
MEXICO.

| II is stated in the Journal or commerce
for July 9th that the 6 per cent. goid
bonds of the Mexican Government are
ouoted IN Europe at IS. The Mexican
Government have so far Invariably kept
its contract, and paid its Interest In gold
but II has foolIshly allowed itself to be-
come a silver basis country; gold has
totally disappeared there. and Europe
does not believe that Mexico Will be able
TO continue payment OF her Interest IN
gold, and ii feels absolutely certain mat
she will not be able 10 pay the principal
| when st falls due In gold.
This tells the whole story OF our finan-
| cial troubles. We have gone on forcing
| upon the public silver dollars worth but
| little more than half what they purport
| 20 be worth, but endowed by arbitrary
law with power to pay full dollars OF
| debt until Americans. even. think that
our Government will be unable TO Keep
| them up to the arbitrary value assigned
10 them. and they have locked up their
| gold and their gold securities. placing
themselves as far as they are able 10 DO
| so in a position that wiz defy efforts 10
make them take silver dollars in place OF
their gold dollars. Europe Is completely
supervened by the same apprehension
She sold the American securities that she
held and took away the proceeds In gold,
fearing the day would arrive when she
would be compelled TO receive our depre-
cia.ed silver dollars in payment OF In
tertst and principal, and until lately Con-
gress has been called. she absolutely re-
fused 10 send one dollar OF money here
for investment in any enterprise what
ever. Even now money is begging Dor
rowers In London at / "a to per cent.
FOR long time loans, while the richest man
here finds difficulty in borrowing II on any
terms. The European prefers TO take lit
tie or nothing for his money by lending IT
out when his principal Is secure. rather
than to receive enormous annual divi-
dends with threat hanging over him that
only one-half OF his principal will be re-
tarned. Having driven out OF the money
markets all foreigners and all Of our own
people who have money. we expect here
after to do a prosperous business through
the beggars and paupers cutting each
others threats. This is the result which
tampering with the public credit always
brings about.
The same article in the Journal of Com
merce 10 which we have referred. states
that less than thirty years ago gold was
the common currency Of Mexico. What a
stupendous fact for Americans TO think
on. The silver miners of Mexico. to find
a market for their silver. forced on the
Mexican Government the policy OF main
taining silver as a standard Of value.
What has been the consequence? The
cheaper metal has driven the dearer en-
tirely away, and Mexico is no more than
the worlds commercial football. Can
not every man see that our fate must be
that Of Mexico if we continue to follow
the same path which she trod?
The statement Of the New York Ma
tional banks. which the Comptroller Of
the Currency called for as Of July 18th.
has just been given out. 1t contains one
fact Of the most powerful significance as
showing how we are driving with railroad
speed towards Mexico's condition The
assets of the forty-nine national banks
on July 18th amounted to 1888 ,037, 745O9.
How much Of this immense sum was in
silver or silver certificates? They had
$3.50, 9Ol31 in silver coin and s3,634,63l in
silver certifcates-s4,22 5 1921 in all-whilst
their gold coin and gold certificates
amounted together to s5O,7S2,744
Now silver certificates are almost the
only money the people see. Let any one
look al the notes he has in his pocket and
he win find that they are pretty nearly
all silver certificates. Per contra. gold and
gold certificates are being boarded by
banks and others. and when they have
the chance the New York bank holds on
to the gold 1t gets. Silver certificates
then are the money with which the coun-
try is doing its business, and, Of course.
silver certificates are what the New York
banks have to take for their deposits
every day. They get little or no gold or
gold certificates; they get most Of their
deposits in silver or silver certificates.
Yet. when we come to look into their af-
fairs. we see this state of facts. What
does 1t inevitably prove2 That the banks
rid themselves OF silver as fast as it
comes to them and hold all gold that
con es their way.
A
If all the banks Of New York are doing
this is it not plain that they are simply
the forerunners Of all other prudent men?
And must 1t not soon result in all gold
disappearing and the only money of the
country being silver? And, when that
state OF facts arrives. wherein Will our
condition be better than that Of Mexico?
One thing all the banks both here and In
New York are doing and that is avoiding
the follies Of the free silver shouters and
keeping themselves strong.
EVIDENTLY A MISTAKE.
Mr.. CleYelands policy which ba nro