Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1896-10-15
OPEN LETTER TO M'KINLEY.
Are You a Proteetionisty

Chloride, N. M, Oct. '1O.-A visit to
Mexico raises many doubts as to the
standing of the Republican party as pro
tectionists. Notwithstanding the fact
that one of the cardinal principles Of
faith of the Republicans is the protection
of American industries, the St. Loui.
platform advocates financial policy that
is in itself an annulment of the very basic
principle of protection. A tariff bill is
intended to make foreign goods higher in
America than they can, be purchased at
home, so as to make their manufacture
an industry that Is profitable for home
labor. Let US look at the action of hav.
ing two kinds ane values OF money, one
cheap and the other dear. The Mexicans
have a silver dollar and have had this
same dollar for many years previous to
1873. Its purchasing power has retained
relative value to commodities and ii
buys as much to-day as it did in 1873
therefore it il to all intents, purposes
and professions an honest dollar. The
citizens of Mexico acknowledge it as
such and prosper under it. On the other
hand the United States has dear dollar
that purchases twice of what it did in
1873, even to the money of Mexico. An
American dollar is equal to $l.9O Mexican
money at the present, and on that basis
let us do little figuring on the effect OF
this premium of exchange on American
industries. Twenty dollars in Mexican
money is equal to $10.53 in American
money. Goods purchased in Mexican
money pay tariff on the American valuation,
The average tariff under the Mckinley
act is As per cent ad valorem and under
the Wilson bill 40 per cent. We will take
the Wilson bill in the present figuring.
Therefore the tariff on $1O.53 will be$4.21,
making what cost $40 in Mexico cost
$l4.74 in the United States, plus freight,
which will be the same under any tariff.
This is our dear money or gold standard.
Now let us look at the same under BIZ
metallism. Twenty dollars Mexican is
500 American. It earns in tariff So,
therefore costs $29 in the American mar
ket. Reduced to figures they are as fol-
lows:
Under gold standard, $2O-$1O. So
tariff 81 21-$1474.
Under bimetallism, $2O-$2O-tariff So
-$28.
Thus $40 in Mexican money that has
not changed it's value in relation to COM
modities only earn $4.21 when it should
earn SO iu tariff in passing through our
ports of entry, therefore we only collect
about half the entry duty we should col
lect under bimetallism. Under bimetall-
ism the product of $40 in honest Mexican
money would be $2S in the United States
with existing tariff. Therefore, $40 SO in
gold money, must earn $17.47 or about
1876 per cent to equal the present tariff
under bimetallism.
Mexican money being the same value
to them as when Mexicsn ard American
money was at, or near, par in 1873, makes
American goods now cost them $l.90 in
their money for every dollar in American.
The premium of 80 per cent on gold
values is more effective tariff against
ourselves than any ever levied bv act of
congress or collected at custom house.
It is possible to smuggle past the one but
the law of values makes the other impos-
sble. The stimulus of this gold premium
is building factories in Mexico, India,
China and Japan. Every factory built on
foreign soil lessons our foreign market.
Every success Of foreign investment
means so much competition. And as
these investments receive bonus of 30
per cent to manufacture in countries
where money and labor is still on the
basis that we we're before the
characterization of silver in 1873, that is
the reason they are leaving US. Every
silver country is prosperous, and almost
every enterprise in them is based on capi-
tai from gold standard countries. Twenty
dollars worth of Mexican or other silver
country's goods is only worth $l4.74 or
$5.26 less than il would be under BIZ
metallism and free trade. Therefore BIZ
metallism is better protective measure
against them than any tariff that could
possibly pass through the United States
congress. Any measure that would be
effective against them would be absolute
iy prohibitive as far as Europe is con-
cerned, and any measure framed to meet
European schedules would be absolutely
null and void against these silver coun-
tries. Protection raised to 60 per cent
against Europe would be prohibitory in
many cases but such tariff still leaves a
bonus in favor of these silver countries.
Twenty dollars silver-$10.53 in gold
go per cent tariff 631-$16S4 which
still lacks $3.16 of being equal to free
trade under bimetallism.
1t may be argued that the European
manufacturers are the only ones we need
to protect against, as they are our only
present rivals. To make tariff against
them prohibitive will only temporarily
benefit American manufacturers and
will be greater inducement to capital
to establish factories in these silver coun-
tries where the conditions will grow
more favorable. European prosperity
is better for the United States than
Asiatic. The first being prosperous buys
our products even at the present ruinous
low prices, the last as our com petitors
need little from us as evidenced by the
balance of trade universally in their fa-
vor.
The international view of this uestion
leaves Republicans as advocating both
bimetallism and protection. The two
are inseparable. A gold standard man
(though he may call himself one) can not
be either Republican or a protectionist.
such position is illogical.
Respectfully,
O. II. LA1DLAw.
II You Had a Friend
About to visit some section of country
-k~.c ~ ID NJ Is.oooa oikhav &, ha fo-,,n