The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-05-29
SILVER IN MEXICO.
Another Bulwark of the Gold Bugs
Demolished.
FAILURES IN MEXICO A RARE
EXCEPTION.
Letter From Republican to a Re.
publican Paper Exploding the
Whines of Money MOnopolists
AS to the Injury of "De.
based" Silver.

Following are extracts from a letter
published in the Winterset Qa.) Madi-
sonian, Republican paper. from
Hon. J. S. McCaughan of Durango,
Mexicon, where he has resided during
the last six years:
Import duties, taxes, private obli-
cations are all payable in silver, so
that while there is nothing to prevent
the coinage Of gold, there is no parti-
cular object in having it coined. as it
is just as valuable and just as avail
able in the form of bullion; its COM
mercial value in either case being
fixed by the comparative value Of gold
/, and silver in the money centers of the
world. suppose at least Qpe-half of
the people of the country never saw a
gold coin, and would not receive it in
commercial transaction.
Il think it may be safely affirmed
that nothing has ever so stimu-
lated the internal development of
Mexico and her vast resources as the
high price of foreign exchange. Peo-
pie are now casting about to see what
may be produced or manufactured at
home; foreign purchases have largely
decreased, and money formerly sent
abroad to pay for articles which
might 'either be dispensed with, or
produced or manufactured at home, is
now retained for circulation in the
country, and is giving marked i'm
petus to business of all kinds. It
may seem strange, but it is true, that
there has been much greater activity
in the silver mining industry since
the fall in the price than before.
Manufacturing is largely on the in
crease, and the same is true as to the
expectation Of agricultural products.
For example, quite a number of car
loads Of beans have gone from this
place to the United States recently,
! and there ore Tour cars now leading
1t the station to 60 out by the next
train. One Mexican gentleman en-
gagged in silver mining made an apt
reply to friend who was trying to
console him on the drop in price. He
said it made no difference to him, he
still got one hundred cents for every
silver dollar, and that was all he had
ever been able to get.
"There has been, of course, consid-
cradle fluctuatiOn in the price of
foreigns goods corresponding more or
but silver being the fixed standard of
the country, with no thought of any
change, there has been no Correspond
ing fluctuation in the price of labor
or home productions.
For instance, board at the Union
hotel has been one dollar and fifty
cents in silver, no matter whether ex-
change has been one hundred and six,
or two hundred and five.
You ask as to the comparative
value of the American and the Mexi-
can silver dollar. American silver
coin is practically unknown here, and
would have no commercial value
though the actual amount of silver is
about the same in each, a little
greater in the Mexican dollar. OF
course the American coin could be
taken to a bank and sold at more than
par In Mexican silver. because the
banker would know that he could ex-
press the identical coins to the United
States and there sell them at an ad-
vanced price.
my observation leads to the conclu-
6lOu UudU 1OI UllC ~ ulUCU OtdUCS anu
for the world in general, the double
standard would be best. AS for Mexi-
CO, with her long established silver
standard and all business adjusted to
1t, it may be doubted if any real good
would result from the change.
Stability, a fixed financial policy of
one kind or another, appears to be
necessary for commercial prosperity,
and it would seem that more depends
upon the feeling of settled perman-
ency than upon what particular policy
Is adopted.
"'And it is doubtless due to the fact
that there has been no agitation OF
the question Of change in the fnan-
cial policy Of Mexico, that she has
passed securely through the panics OF
the past two or three years with
scarcely a touch of their paralyzing
infuenences, For it is an indispu.
table fact that while business in 9TH
er countries has been stagnant, and
failures of daily occurrence. failure
in Mexico has been a most rare excep-
tion, and her business and industries
have shown increased activity"
j. S. MCCAUGHAN.