The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-04-14
TO COIN MEXICAN DOLLARS.
How Senator WolcOtfs Proposition
Would Aid Our Silver Mines.

would Aid Our silver Mines.
Special to the Indianapolis Journal
WASHINGTON, April 13.-A great deal
of interest has been manifested here In re-
gard to the exact meaning of Sena or VOL
colts resolution, which was passed by the
Senate day or two ago, requesting the
President to enter into negotiations with
the republic Of Mexico looking 10 the coin
age by the United States at its hints OF
standard Mexican dollars. While this has
nothing TO do with the general question
OF bimetallism, II is looked upon as a IA
vorable step by the silver men 10 solu-
ton of one portion of that vexed question.
AS is well known TO every business man
interested In the China trade. the Mexican
dollar is the standard OF value in China.
When she first opened her ports TO foreign
trade that dollar CHANGED TO be adopted.
and II has remained the standard ever
since. The English government coined some
ten thousand dollars, but they failed 10 be
accepted. Similar failure attended an effort
of France. and the dismal history of the
trade dollar OF the United States Is too
recent to need repetition. Even the Mex
lean government was unable 20 change
even the die OF it's dollar An. effort TO
adopt a new emblem was promptly re-
scented by the Chinese merchants, and the
Mexican mnts were compelled TO return TO
the old dollar marked with the cactus the
eagle and the snake. The coin has no ad-
vantage over any other dollar. Intrinsical-
ly II is the cheapest, being only So p'rains
fine. while the trade dollar was 40 grains
fine. But the Mexican dollar, vas the
standard set by precedent, and the stand
ard dollar IL will remain.
The Mexican minis unable TO turn
out these dollars fast enough TO supply the
demand. Their capacity is only twenty
five or twenty-six millions a year How
far the demand for these cheap Mexican
dollars exceeds the supply is evident from
the fact that they command In London and
in New York premium varying from a
to per cent. The purpose of Mr.. Wolcotrs
resolution Is 10 come 90 the relief OF the
Mexican mints and thereby furnish n mar
ket for, perhaps, some forty millions OF
coined at the United States minis are TO
be used for export only. They will never
| form part of our currency. Mexico does
| not produce silver enough for her own use
on all silver exported. But so great Is the
demand for the Mexican dollars that about
S2OOO0 coo OF the Mexican product is ex-
ported annually 10 the refineries at Swan
| sea, England, and there coined IL Is easy
| TO see that II some arrangement can be
| made between the two republics that a
profitable and legitimate market con be
| opened for some OF our American silver
| bullion 440 per cent. on every dollar
| coined. This seigniorage the United States
| minis would. or course. pay over 10 the
| Mexican treasury, and would doubtless
| charge the American silver owner an adj
ditional seigniorage TO pay the expense OF
| the American minting. IL VIII thus be
! seen that there Is no principle Of bimetal-
/ lism involved. No assurance Of any kind
| good reasons TO believe that her aLswer
| will be favorable.