The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-10-20
|. P. GRAY ONFREE L V
WHAT ONE OF THE DEMOCRATIC
IDOLS FOUND IN MEXICO.
Conditions Which Convinced Him
that Free Coinage Was a Mon
strOus Financial Bluuder.

Shortly after Cleveland began his second
term as President he appointed ex-Gover-
nor Isaac P. Gray, of this State, as min
lister to Mexico. After being in that coun-
try a short time Mr.. Gray visited his home.
This was in October, 1893, at the time that
Congress was in special session considering
the bill to repeal the purchasing clause of
the Sherman law. There was a great deal
of discussion at that time as to the merits
of the question, and every possible source
of information was courted. Mr.. Gray,
having spent some time in Mexico, had
noted the effect of the rapid decline of
silver on the money of that country, and
had fully seen its evil effects. He found
that the great trouble came from the fact
that the money value was constantly fiuc-
tuating, and that merchants who bought
goods abroad never knew what they would
have to pay for them, or when sold that
they would be able to get what they cost.
Oct. %, 1893, Mr.. Gray was interviewed in
Chicago on the condition of free silver in
Mexico. He said:
IF the United States government wants
to know what the condition of this country
would be in a short time if the free coin
age of silver should be attempted it needs
only to look across the Rio Grande and in
v~estigate the financial status of Mexico.
Mexico's entire financial system is on q
silver basis. And what is the result? To-
Idy IIlG merchants anu DuSiIltSS Alt VI
Mexico are compelled to pay "A per cent:
for exchange on any bank in the United
States or in Europe Thls is due to the
on a silver basis, its money, therefore, de-
~preciates with silver and becomes cheap.
Business in Mexico is almost at a stand
still just now, waiting 80 see what the out
come of silver will be when the United
States takes final action on the repeal.
Mexican business men are anxious that the
silver question be settled one way or the
other, SO that they will know on
"a merchant in Mexico now who buys
500 worth of goods in Paris, London, New
York or Chicago must pay the foreign
seller STA in Mexican money at the present
rate of exchange. If silver should still fur
ther qepTeclate N1eAlcdh IioHey wouiu pe-
come still cheaper, and he would have 70
pay more in exchange. On the other hand,
if the silver problem be settled in such a
way that silver should appreciate, then the
per cent. on exchange would decrease, and
the Mexican merchant who had bought a
supply of goods while this high rate ex-
costly stock in his store. So. it is readily
seen what uncertainty exists at present
among the Mexican merchants. They are
simply buying only such supplies of goods
as will meet the demands of their trade
purchases they must wait and see the fate
OF silver. All this paralysis of business
just at present in Mexico is due to that
~country's cheap silver money. One never
sees any gold In general circulation there.
Il do not believe that the United States
could maintain the free coinage of silver
if it should make the attempt I was not
in favor of the Sherman law from the
start. for when that act was passed | made
arguments against IL in my public speeches.
I considered 1t unwise to buy $500, 600
ounce of silver per month and simply com
pei the government TO furnish a market
for a few silver miners. 1t was simply
pfling up silver bullion in the government
vaults. while all the time it was becoming
cheaper, until finally 1t would be almost
like piiing up so much pig lead or so much
And to pursue that course very
long would place this country in a finan-
cial condition similar to that of Mexico
now. ! believe the best thing for the
United States is the unconditional repeal
of the purchasing clause of the Sherman
act. and after that has been accomplished
then something can be done for silver.
Both gold and silver should be maintained
as a national currency"