Birmingham state herald., 1896-03-04
A VOICE FROM MEXICO.

Allen of Utah delivered a speech in con- gress on the financial question, and in- corporated as part of his remarks the following interesting letter from Mir A. V. Temple. manager of the Mexican bu- reau of information. This letter speaks for itself:
 City of Mexico, Jan. IS, 1896.
 Dear Sir: Answering your favor of the 18th instant, l send you under sepa- rate cover some printed matter and data referring to Mexico, prepared by this office. In this country the silver ques- tion is not discussed, as it is a question which interests us very little, being al- ready on a silver basis. The prosperity of this country has undoubtedly been greatly aided by our silver coinage, as we have been entirely exempt from pan- ics and financial crises of all and every nature. And although within the last five years there have been two droughts. which have resulted in partial losses of the corn crop-the most important crop of this country-stll the receipts of the government from taxes have gone stead fly on increasing, and this in spite of the fact that there has been no increase in taxation. In fact, taxes have been re- duced during thls period
 "Fhe effect of the silver basis on this country appears to be about as follows: Native capital now remains in the coun- try and is invested in home industries and enterprises, instead of being sent to Europe for investment as formerly. All so, as the income of our more important or wealthy families is entirely in silver, the premium on gold has resulted in keep ing their money in this country, and now a larger proportion of them remain at home and spend their money here in- stead of throwing 1t away in Europe
 Another thing: The premium on gold has increased in a most wonderful man. ner the exports of Mexico. We now ex- port and make large profits on various articles which in former years 1t was not profitable to export. At the same time prices in this country have been but little affected by the premium on gold. l have been resident of this republic twenty six years, and during that time have been intimately connected with financial and mercantile houses. I would say that a Mexican dollar buys today as much in this city as it did when l came here, and at that time a Mexican dollar was worth $l.10 in gold in San Francisco. The price of corn, beans flour, wearing apparel etc, is almost exactly the same as in former years. Of course there are fluc- tuations due to good or bad crops, but the average cost of all the various arti- cles which go to make up the expenses of family are almost exactly the same as when gold was at par.
 You will note by the printed matter sent you the wonderful increase in the income of the government, and also of the Mexican Central railway, which l think will compare favorably with that of governments or railroads on gold ba- sis. Also, the price of Mexican securi- ties has steadily been advancing in spite of the increased premium on gold. The fact is that an abundant supply of good silver dollars, which everybody can get and everybody can spend, seems to make people more cheerful harder workers and induces the capitalist to go into new enterprises. Although there are bank notes in circulation in this country, they are represented by an actual store of sill yer dollars, so that at a moments notice the same can be converted inlo com. Thev are, in fact, like the gold certifi- cates of the United States except that ours are issued by incorporated banks. Mercantile failures are rare, and manu- featuring establishments, especially those engaged in the manufacture of wool and cotton, are paying large dividends. Banks are also paying from 10 to l6 per cent a year on their capital stock. While the perfect peace and order which Mexico has enjoyed for the past twenty years has had great effect on the development and prosperity of this country, l also believe that our silver basis has helped us prosper as much as any other cause Also, another element which has helped this country greatly in all mercantile transactions is the stability of our cur rency. It obviates the necessity of an inverted pyramid of paper, supported on a small gold basis, and there are none of those sudden fluctuations and varia- tons in prices which result from a less sound financial system. The capitalist or the merchant knows that coin can al ways be procured, and that it's value for purchasing purposes in this republic has had but little, if any, change within the last century. The income of this com pany, which increased $1,070000 in 1895 over it's income in 1894, shows in strik- ing degree the constant development Of the country. In other words, sound currency and fixed value has stimulated in the past and is stimulating today, all mercantile enterprises, and the results can be seen in the dividends paid by the banks and mercantile enterprises of the country.
 "The premium on geld also tends to bring it to this country. European in vestors, taking advantage of the premi- um on gold, are more willing to come here and make investments in mining, manufacturing, etc, than if this dispar- ity between gold and silver did not exist. While doubling their capital on bringing 1t into Mexico, they can go into produc- ton of articles for export which are sold for gold; as, for instance, coffee. rubber, hides, vanilla and kindred products, so that practically they double their capital and yet receive gold interest on their investment
 "A silver basis seems to tend to the n- crease of a larger number of small in- comes rather than a small number of larger ones
 Any further information or statistics you would like I will take pleasure in forwarding if you will indicate to me what you desire. Yours truly,
 "A. V. TEMPLE,
 Manager Bureau of Information. "Mr Clarence E. Allen, M. C.. House of
 Representatives, Washington D. C."