The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1895-04-05
SILVER COUNTRY RAILROADS.

l
A quotation was made in these
columns yesterday from the Finance
Chronicle, touching the prosperity of
Mexican railways under free COMA e,
| compared with distress of the Ameri-
can railroads under the gold standard.
A few days previous the Eagle also
made quotation from A. a. Robin
son, formerly general manager of the
Santa Fe system and now president
of the Mexican Central railway, who
declared that the prosperity of his
corporation was traceable to the free
silver currency of that country. Some
cannot understand where the advan-
tage could possibly come to Il railroad
under free silver currency the bonded
Indebtedness of which roads is pay
able, in both interest and principal, in
gold. The answer is such pros
perity comes of the general extra pros
| perity of the free silver country.
Following the above testimony, now
comes that Of the president of the
Mexican National railway, who makes
showing that ought to set fnanciers
TO thinking about the currency queS-
ton and to account for the increase
of local internal traffic of Mexico while
that OF the United States has been
daily shrinking for Il long time, in
fact until nearly one-half of the mile
age of the country is in the hands of
receivers. In spite of the loss arising
from the cost Of exchange to Mexico
to meet its foreign obligations, there
never was such national prosperity
as now. But to the figures and facts
as set out by President Raoul, the
total earnings Of whose road last year
were 81 ,329,019. The expenses for the
same year were $2437, JIG. This
showed the net earnings to be 81 SOL
962 in Mexican currency. But I'M
fortunately there was loss of 81 .0S6,-
Oh incurred by the conversion of the
net revenues into gold. This reduced
the amount available for the payment
of interest in $720,137. The addition
of subsidy collections from the Next
can governments increased the amount
to SS19,S46. The showing is that the
affairs Of the company are in 4 good
condition. But how very much better
they would be if it We're not for the
loss on exchanged
In his report, Mr.. Raoul, the presi-
dent says that there was no appre-
cable diminution in the purchasing
power Of the Mexican silver dollar
as applied to labor and materials of
Mexican origin. This he also SAYS
stimulated the effort and made it
practicable to neutraliZe, in some de-
gree, the bad effects of the fall in the
bullion value of silver outside of Mex
leo, by increasing the number of arti-
cles economically manufactured in the
company'S shops and the quantity and
variety of native supplies and mater
lalS advantageously purchased in Mex
leo rather than in gold-using countries.
All this teaches two things to be
true. The first is that while business
in the United States, gold standard
country, is depressed, just across the
border III Mexico, silver standard
country, it is prosperous. The other
is that the cost of exchange is operat-
ing as protective tariff in Mexico and
stimulating the development of the
resources and industries of that coun-
try.
1t is evident that if this country
threw its minis open to the coinage
of silver it would capture practically
the entire trade Of Mexico and other
silyer-using countries that now deal
with Europe. 1t would hardly be a
good thing for Mexico, for it would |
check local development of industries |
in that country by making it prac-
ucable to procure supplies in the ,
United States without mourning q loss
on account of conversion of silver
money into gold. The United States
is simply running itself for the benefit
of England. The way for a return
to prosperity is open. But the men
who, during the last twenty-five years. |
controlled the finances of this country. |
were blind guides, and it is for that rea- |
son that the whole nation has fallen |
into the ditch.