Alma record. (Alma, Mich.) 1878-1928, 1895-12-27
THE MEXICAN DOLLAR
WHY 1T is NOT WORTH ONE
HUNDRED CENTS HERE.
Not Endowed with Legal Tender Privi-
loges-Could Easily Be Brought to "a
Level with Gold by Legislative Enact
ment.


on the assertion that if we had free sill
yer, our dollar would be like the MeXi
can silver dollar, not worth its face out
side the United States. Why does no
the Mexican dollar pass for 100 cents
in the United States? Please give tn,
reason for unlimited gree coinage in
stead of the American product"
Mexico is a silver standard country
pure and simple. and its silver dollar
is not coined on bimetallic principles
There is nothing in the monetary sys-
/ tenn OF that country TO link the metals
together. No gold is coined, while sid
yer is coined without limit. Hence the
silver dollar of Mexico follows the
course of silver bullion and is of about
the same value.
In bimetallic country both metals
are freely coined. They are both thrown
into the common mass of the currency
where each is endowed with the same
junction of paying debts. The govern
ment receives them without discrimina-
ton, and disburses them in the same
way hN SllFtl Gull 10 llOl Ituttli-
able in a gold one, nor is the gold coin
redeemable in a silver one, but each
being a full legal tender for the pay
ment of debts, each has the same value
for all purposes. When the coinage Of
both is unlimited. they meet upon an
exactly equal footing. In each case the
bullion will be equal in value TO the
coin unless there is a charge for coin
age) and the coins of the two metals
will be equal to each other. AS gold is
not money" in Mexico, il is manifest
that the bimetallic principle does not
work, and no conclusion can be drawn
from the status of the silver dollar OF
that country.
II Mexico were capable OF taking
into her currency 800, 900 in silver
each year, 1t would not have the effect
of keeping gold and silver at par 1t
might create such a demand for silver,
as to place it at a premium over gold,
but in order to hold the two metals at
a fixed ratio they must meet upon com
mon ground, and in such manner as 10
AidhC lAlClll ~
If the Mexican dollar were made full
legal tender in this country there is
scarcely room for doubt that it would
at once go to parity with gold. 1t
would be the same thing in substantial
effect as free coinage by the United
States, the only difference being that
the coinage would be executed in Mex
leo instead of here. Not only this, but
the bullion itself would rise to par.
for no one who had any re-
gard for his own interests would sell
bullion for g. cents an ounce, when he
could have it coined into Mexican dol
lars and use them as full legal tender
the United States.
This suggests another point of differ
snce between Mexico and the United
states which the opponents of silver
coinage in this country persistently /
overlook. namely. the enormous dis 7
between Mexico and the ,
United States in population, wealth and |
resources. There is not a bimetallist
n the world that claims that Mexico
-OuId iii wv upon utI IIlIulS W DOlu
metals and maintain the gold and sill
yer coins at a parity with each other.
country to do that must have a ca
)acity for the absorption and use Of
arge amounts of both metals In short.
t must be able to take into its none
airy system and use whatever surplus
# either metal may remain after the
leeds of other countries have been sup
lied. Mexico possesses no such ca
acity.
To say that the United States is equal
n financial strength to twenty Mex
cos is to make very moderate state
lent. The total population of that
ountry is about 100000. OF these
bout 100000 are full blood Indians.
bout 100000 half breeds and little
yer 100000 whites. In other words.
he white population of the United
tates is fully 50 times as great as that
f Mexico
Her foreign commerce. leaving ex-
orts Of specie out Of consideration. is
bout one-twentieth that of the United
IdltSs Nhllt hti lllItl Hal lIdup Is even
.ss in proportion. Her total stock of
Ietallic money is only from 80 to 60
illions of dollars, and her aggregate
ealth is to ours scarcely more than as
to $50 These figures are merely
Dproximations but they are accurate
longh TO show the utter insignificance
Mexico compared with the United
.ates.
In claiming that the American repub-
C can coin both metals freely and hold ',
em at a parity bimetalists base their
dgment upon the enormous financial
rength of the country. They take
to consideration its 10000, 600 of peo-
e. soon to be 100000, OO0-the most
tive, intelligent and energetic to be !,
und on the face Of the earth; it's $40
4, 900 600 of wealth, its resources on
cry conceivable line, and it's almost :.
limited capacity for future develop +,
ent. They believe that such a coun- :
y can coin every ounce of silver bull :
On that is not required by other ma ;
)ns, and maintain its parity with gold :
the ratio of 16 to /. .