New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-11-10
THE MEXICAN DOLLAR IN CHINA.

THE MEXICAN DOLLAR IN CHINA
MR. MoREToN FREwENs SUGGESTION FOR THE
COINAGE OF SILVER OF THE UNITED STATES
To the Editor OF The Tribune.
Sir: While the accident of the war in the East
may probably create a demand for silver and thus
steady the exchanges between Asia ana the "hi'e
ma TONS yet the present position is one of great
anxiety. While wages and prices In all the up
country districts Of Asia have not risen at all d"r
ing the past fifteen years, the exchange value OF
the money Of 100000 900 Of people has fallen one-ha
On the consequent contraction Of Asia imports
and the stimulus afforded by falling exchanges TO
her exports. there Is no need to dwell
But during the recent session Of Congress reso-
luton offered by the Colorado Senator'S that
by agreement with Mexico the San Francisco mint
should be handed over to the Mexican authorities
that the silver Of the Rockies should go direct
through that mint in the form of Mexican dollars.
which are the current money over n large portion
Of China and the Malay Peninsula. Mexico Is at
present coming some 100000 ounces OF silver per
month for this Eastern trade. and these dollars go
to the East largely by way of San Francisco. and
II Mexico would take advantage Of the financial Glib
offered her by the resolution of your senate
| venture to think that i'm the present position OF
the silver market nconsi1erable rise In eA-
change-that is. in silver-would follow. Mexico
would secure n threefod advantage % from the
per cent seIgnorage which is paid her Government
now on each dollar struck: (2) from the rise In
exchange with her chief creditor, England; CD
the I'm the gold price of her chief product.
silver. II is true that the British Government has
now practically decided to coin British trade dol
lar OF ~ grains for Eastern trade: these
dollars to be struck at now idle mints in
Bombay and at per cent seigniorage. But the
Monaghan prejudice against a new coin Will not
be easily overcome. and therefore our new silver
currency may considerably relieve the con-
gested silver narlet.
therefore venture write in the interests Of
silver, ask whether the proposal OF las; session
cannot be carried out. At present your silver bull
lon is taken free OF duty, into Mexico for mintagc
and must often obstruct and delay the striking or
dollars. the product Of Mexco's own mines.
For months past have observed that the
demand here for Mexican dollars at varying
premium has been great: bat 40 absolutely de
nuded day after day has been this market Of these
coins. that 1t has been impossible very often oven
get a quotation and finally the business, altcrna-
tive of British trade dollar has been accepted.
Mexicans viii bear I'm mind thai they are sold and
the price quoted. 10y weight. The silver in these
dollars IS ony $50 fire. while the fine silver n tn"
standard ounce Is 49,. give YOU. for example. To-
Mcxicans %',d. buyers At . 3-l6i for fine silver
the dollar comes out AZ 2s}3d whereas its quoted
price Is nearly cents per ounce higher. And IN The
form Of dollars the demand for silver seems :, be-
as Your senator Jones says OF the demand FOR
money. constant ard instant and always a. . maxi
mum. and Of late years the reverse OF TINS holds
Bear in mind. further. that although the seign
forage would be- cents per ounce. yet a dollar
struck San Francisco would b. worth quite as
much the Mexican dollar after II has travelled u
London. whereas the London price % silver bullion
is general.y-inieel. think. always higher tn m
the price quoted az san Francisco. And, further
arg" Increase Ia the export 90 t1sse cOlls across
the Pacific would doubtless bring t. your Pacific
ports a considerable trade stimulus. There are
other exchange advantages alsp for san Francisco
London would be- large buyer OF san Francisco
silver bills fOi gold. with which 10 pay for her IN
creasng imports from Hong Kong AMI singapore.
but th.s" complexities there BE- no need 10 enter
~ course IN, British trade dollar may -
M once. but then again IN may not Your utI'
lilr hoycottrl. also was the irench d)lIdr
Tn. Mexican j Ear the other hand the moment
IL IL = -uck ana delivered within CHINA. comWinIs
good ratc OF interest and relieves the silver bulon
u4rNtt Of Just s. much OF the load. While bullion
breaks thu market. coin supports H. Might y not
hc possible for a small Joint commission ~ Amer
can and Mexican etper.s = meet ana consider tnl5
proposal Il your S.ia,e2 The question ~ silver -
So co.,r1pl.itln that feel need not apollo. .1e for
iufruilng upon Your columns
f,nI,n sent d. lsQl MORETON FREWEN.