The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-09-02
MEXICAN DOLLARS.
SOME IMPORTANT FACTS ABOUT
THEN.
Like Some Of Uncle SANS Green.
backs, They are Not Legal
Tender for All Debts.
Editor Representative.

Editor Representative.
Dear Sir:-The clippings from gold
bug papers which you sent me were
duly received. 1t is strange how un-
fair and false the sin Of avarice can
make men. 1t has been said that,
should an avaracious man conceive it
70 his interest to deny the existence
OF the law of gravitation, he would
promptly do SO; and, then, he would
1ndustriously ransack the universe for
evidence to prove his position.
The clippings you sent me misrep-
resent the facts respecting the COIN
age Of silver in Mexico In order to
prove that the 'free and unlimited
coinage Of silver In the U United States"
would result in giving us half-price
silver dollar.
What are the facts as to silver coin
age in Mexico? In the first place,
Mexico does not practice free and un.
limited coinage. She does not even
coin all OF her own product. but a
large portion OF her exports Of silver,
are thrown into the markets of the
WOrl0 as bullion.
The price Of that bullion fixes the
price of silver in Mexico, including the
coins. which are but partially legal
tender. It is cardinal doctrine Of
the silver men that, so long as any
portion OF the silver supply remains
uncOined and must be sold as bullion,
the price of that bullion thus sold
fixes the price of the bullion in the
coins. Mexico coins but little over
half her annual silver product.
In the midst Of a condition like
that, the bullion in the Mexican dol
lar must necessarily sink to the value
of uncOined bullion. That is the In
is the doctrine taught by the silver
men Of Europe and America during
the past twenty years.
To preserve the coinage value of sill
yer above its bullion value, there
must be stable and responsible gov
ernment, with large commerce and
vigorous laws of legal tender well-in-
forced, as is the case in the United
States, England, France, Germany,
and several other countries. In all
these essential qualities Mexico is
lacking.
In the first place, as already stated,
d
her annual product of silver
In the second place, being compelled
to provide gold to meet the interest
on her foreign debt, she must collect
large portion Of her revenues in gold.
That IS discrimination against re-
ceiving silver in the revenues of the
home country; and, then, as gold pay
ments are required on part of the
public debt. that is limit to the legal
tender quality of silver coin. Hence
we find the Mexican silver money in
somewhat the same condition Of our
greenback during the war.-good for
all purposes Except dLt es on imports
and interest on the public debt" The
greenback fell to half price. and, fol-
lowing the same law, is 1t strange
that Mexican dollars should be worth
less than full legal tender money?
The same was the case with our
trade dollar of 1876. So long as it re-
tanned the quality of legal ten
der 1t was at par with gold;
when the legal tender quality
was repealed, the great heavy
dollar became bullion and was worth
only bullion price.
The same was true of gold when de-
monetized by Germany in 1857. It be-
came bullion in that country, and the
price Of the coins fell to bullion price.
And, in England, at the present nc
ment, the value Of English gold coin
is three cents an ounce greater than
gold bullion. The difference is main
tained by the law of legal tender, and
receivability in the revenues. In
these respects the government of
Mexico cannot act freely and fully be-
cause of the contract to pay gold on
her foreign debt.
The condition. is stated by Justice
Walter Clarke, who recently travelled
in Mexico. Judge Clarke says:
while the Mexican leaders were
wise enough and patriotic enough to
save their country from the tortures
and depression Of the gold standard
and falling prices which we have had
to endure. many years ago when they
funded their foreign debt ($18O, 900, :
OoO), gold and silver were at par: and
not anticipating any attempt to de-
monetize the latter in order to double
the value of the former they unwisely
consented that the interest on this
foreign debt-as a matter of convent
ence-HhOuld be payable in London,
and in gold. They did not know there
was any Inconvenience In it then, but
they have found it out now, as, like
our debtors and taxpayers, they are
paying double what should be Justly
paid. 1t Is just like contracting for
ten thousand bushels of wheat and
then doubling the size of the bushel.''
See the Arena for June, bottom page
IS.
In 1892, the production of silver in
! Mexico was $50, ,281, ,3ll. The coinage
was $26, 1872, ,72l. The uncoined surplus
and large part Of the coin was ex-
ported as bullion. (U. S. Coinage
Laws. page 1861
Now, In spite of the bad conditions
In Mexico, the country Is prosperous.
The wages OF labor are gradually ris-
fng, the people are employed, the
price OF farm products are reasonably
good, manufactuFes are rapidly in
ereasing, the purchasing POWER 6f
money has remained steady, there Is
ID immense premium on all their ex-
borts, and their only drawback Is the
cost Of exchange In making foreign
aold payments,
Il the gold-bug papers will but state