The record-union., 1896-08-31
MEXICO And SILVER.
An Interesting Interview With Resi-
dent.
After Nine Years Spent in That
Country H. G. Payne Gives
His Views.

A New York special to the Chicago
Record" says:
Henry c. Payne, who has been for
many years in charge Of the mercantile
house of Robert Boxer, one Of the larg-
est in Mexico, is here, and [ submitted
to him to-day a number of inquiries that
have recently received concerning the
effect of a silver standard upon wages
and the cost of living in that republic,
and whether the depreciation of the
value of silver had added to or detracted
from the prosperity of the people.
should say in advance that Mr.. Payne
is a Kentucky Democrat. He comes
from the city of Lexington, but has been
in Mexico for eight years, so that he has
lost his connection with the politics of
his State. He has recently accepted an
offer from the firm of Flint, Eddy & Co.
of this city to establish branch in Sgd
ney, New South Wales, and is now here
preparing for his departure.
Il should say that the depreciation Of
the price Of silver had generally in
creased the prosperity of Mexico" said
Mr.. Payne, In answer to my question.
Il am not prepared to give any statis-
tics, or go into details, and speak only
from a general knowledge of affairs
Mexico is an agricultural country. Most
of the people are engaged in raising food
products. The next largest number,
which is comparatively small, are en-
gagged in mining. The remainder of the
population are shopkeepers. There is
very little manufacturing. The largest
interests Of that kind are cotton mills
and shelters, but 80 per cent. of all the
goods manufactured in Mexico are made
in the house, sold and used by the peo-
pie who make them, or exchanged with
their neighbors for other products, arti-
cles Of necessity, made in the same way.
This applies only to the peon class, who
constitute 80 per cent. of the population.
There are only two classes of people in
Mexico-the poor and the rich, the land
lord and the tenant, the employer and
the employed. There is no middle class,
as in most every other country.
The rich people, who constitute per-
haps 100000 or more of a total of 49,,
100000, have been accustomed to use
nothing but imported goods. They have
bought every thing III Europe or the
United States except their food, and a
good part of that also.
Nine years ago when I went to Mex
leo the Mexican dollar was worth near
ly par in United States gold To-day it
is worth 81 or % cents. The gold dollar
nine years ago was worth los; now it is
worth about POI. That difference is due
to the depreciation Of silver. The value
Of the American dollar has gone UP
and the value of the Mexican dollar has
gone down. Nine years ago we could
buy twice as much of imported mer-
chandise with Mexican dollar as we
can now, but the price of domestic mer-
chandise has remained about the same,
huctuatlng only with the natural con-
ditions of supply and demand
AS the imposition of a duty upon
lead ore by the United States caused
the development Of a large industry at
Monterey and San Luis Potosi, because
the miners could not afford to pay the
duty and had no other means of getting
rid OF their ore, so the depreciation of
silver has caused a DEVELOPMENT of
manufacturing in q small way. The
people are supplying their own wants
so far as they can in preference to paw
ing two prices for foreign-made goods.
This has resulted in a falling off in the
t'AtPOA 10 VI liAC SOQAlIy. AL the same
time 1t has stimulated expectation.
Every man who could produce anything
for export has done so. Everybody who
has had an article that he could sci;
abroad has shipped it out of the coun-
try Why? Because he has been able
TO pay silver prices for it's production
and get gold prices in it's SALE A bushel
OF corn and quintal of coffee cost no
more in silver to produce, but bring
twice as much in foreign market be-
cause they can there be sold for gold
The natural consequence, as 1 have
said, Is to stimulate production at home
Of articles that have hitherto been inn
ported and to stimulate the expectation
of articles for which there is demand
in Europe and the United States. Thus
the producing class has been ENJOYING
unprecedented prosperity"
How has this affected the laboring
classes?"
1T has not affected them at all. They
do not know anything about it. The
landowner. the capitalist and the mid
dlemen have enjoyed all the benefit The
man who works with his money and his
head is getting rich. The man who
works with his hands is Just the same