The Philipsburg mail. [volume] (Philipsburg, Mont.) 1887-current, 1894-04-19
Considering Their Coinage
in American Mints.
THE FUTURE OF SILVER AND TRADE
MOreton Frewen, the English Ri
Metallist, writes n Letter to the
New York Press, Explaining
the the Possible Significance
of Wolcott's Resolution. 81

I A resolution WAS moved in the Senat
to-day by Senator Teller for his colleague
Mr. Wolcott, that by agreement with th
Mexican Government the free coinage O
Mexican dollars should be permitted a
the United States mints Of Carson CITY
New, and San Francisco. AS the i'm
mence area over which these dollars ar,
to-day legal tender is not very generally
appreciated by those Interested il tn,
silver question, will you allow me to pocin
out the several trade developments likel,
to follow if this proposal is agreed to?
Your readers will bear in mind that
while the French trade dollar and the
American trace dollar have failed to OBJ
tain circulation in China the Mexican
dollar, on the other hand, is the current
legal tender money of large portion of
China and the Malay peninsula, as also
England's straits settlements, Borneo and
Ceylon. The Mexican mint reports show
that during 1892 the coinage of these
dollars aggregated twenty-six millions,
OF which mass all but million we're ex-
ported from Mexico. Messrs. Page &
GWyther's report for 1893 shows that
some fye millions of these coins passed
via Suez to Singapore, while not less
than eight and a half millions took ship
at San Francisco for China. It comes
important in view of the twelve million
dollars exported from Mexico, but not ac-
counted for. Doubtless a considerable
portion went west from your Pacific ports
IN the trunks of home going Chinese,
It must be borne in mind that the mint
charge or "seigniorage" on silver dollars
levied by the government of Mexico is
4 - per cent. The export duty on bar
silver is only per cent. It says much
therefore for the demand Of silver in the
form of coin rather than bars that, while
some 2l,OOo'00O ounces left Mexico as
dollars, only 100000 ounces left as bars.
The direction of Senator Wolcott's pro-
posal now becomes evident. The great
fall in silver causes the Mexican dollar,
which used to be exchanged at the rate
Of four and one-half silver dollars for one
gold sovereign, to now exchange at the 4
rate of ten silver dollars for gold sover-
71gn. This operates as great stimulus
10 Ch1na's exports to Europe and as
contraction of her imports from Europe
and America. This revolution in the
Chinese and Indian trade, which has foil
owed from the British Governments
'ecent' "tampering with" the Indian
standard, promises to be the most inter
'stlng economic and social problem Of
he coming years. ''fr af
China, favored as against India by tho
present very low rates Of exchange with
'old using nations, is about to increase
err largely her exports, and will there
ore import silver on an unprecedented
Gale, W. y Y ~. 'a#' VI,
1t seems, probable, then, that with the
nlnts Of Carson and San Francisco open
the free coinage of Mexican dollars
he Ele silver product Of the Rocky Mount
ins to-day hunting an outlet at heart
r'eaking prices may GO directly west
cross $ the Pacific to find ready demand
China in return for imports OF tea,
TX, jute and many other commodities.
That there is a great scarcity of cur
ency IN China is not doubtful, as also
lat the Chinese can absorb silver in the
'rm OF coin very rapidly. The imperial
lnts at Canton, its operations jealously
uarded . from all scrutiny, appears to be
1 le monopoly of certain high place man I
arms, who run it when they require a
lpply of pocket money. This mint
'lned last year for all China less than
100000 ounces of which two-thirds was
sued in shape Of 100000 ten cent
eces. These coins also we're probably
'ed for buttons. AS suggesting the
mount OF currency which China might
osorb it she could get it, contrast this
image OF only 100000 ounces with the
100000 ounces British India, a poorer
I'd less populous country, has frequent
coined IN single year.
Senator Wolcott's proposal may there
re prove to be of international import
zee. 1t must make Of San Francisco
important exchange center, and with
ch dearth Of Mexican dollars in China
prevails to-day, 1t is likely that Lon
N merchants importing from China
ay order these dollars by cable and 4
We gold bills on London in exchange Fl
RI j1pr - L. -.