The Black range. (Robinson, Socorro County, N.M.) 1882-1897, 1896-10-09
Open Letter to Major Mckinley


MAJOR MCKINLEY,
Canton, Ohio.
A visit to Mexico raises many doubts as to
the standing of the Republican party as
protectionists. Notwithstanding the fact
that one of the cardinal principles of faith
of the republicans is the protection Of
American industries, the St Louis platform
advocates a financial policy that is in itself
an annulment of the very basic principles 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 profit
able for home labor. Let us o at the &C.
ton of having two kinds and values of
money, one cheap and the other dear. The
The MeXicans lave q silver dollar and have
had this same dollar for many years previ-
GUS to 1873. Its purchasing power has re-
tanned a relative value to commodities and
it buys as much to-day as it did in 1878 there
fore it is to all ~intents, purposes and pro-
fessions an Honest Dollar. The citizens of
Mexico acknowledge 1t as such and prosper
under it. On the other hand the United
States has q dear dollar that purchases twice
of what it did in 1873 even to the money of
Mexico. An American dollar is equal to 1880
Mexican at the present, and on that basis let
US do a little figuring on the effect of this
premium of exchange on American indus
tries. $1,000 in Mexican money is equal to
$40 so in American money. Goods purchased
in Mexico pay tariff on the American valu-
alton. The average tariff under the McKin-
ley act is As per cent ad-valorem and under
the Wilson bill 40 per cent. We will take the
Wilson bill for present figuring. Therefore
the tariff on $l0.53 will be $4.21 making what
costs 5000 in Mexico cost $14.7 IA 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 bimetallism. 5000 Mexican,is $1,000
American. 1t earns in tariff $500 therefore
costs $500 in the American market. Reduc-
cd to figures they are as follows:
Under Gold Standard, $1,000 ~ lO.53-
tariff A.21 Sl4.74.
Under Bimetallism, $780, 90 = $40. OO-tarif
$500 = $500.
Thus $1,000 in Mexican money that has not
changed it value in relation to commodities
only earns S.2l when it should earn $500
in tariff ia passing through our ports of en-
try, therefore we only collect about half the
entry duty we should collect under bimetal.
lism. Under bimetallism the product of $40
in honest Mexican money would be SIS in tile
United States with existing tariff. There
fore $lO5 in gold money must earn stat or
about l66 per cent to equal the present tariff
under bimetallism.
Mexican money being the same value to
them as when Mexican and American money
was at, or near par in 1873 makes American
goods now cost them 81 80 in their money for
every dollar in American. The premium of
80 per cent on gold values is a more effective
tariff against ourselves than any ever leyied
by act of congress or collected at a custom
house. 1t is possible to smuggle past the
one but the law of values makes the other
impossible. The stimulus of this gold
premium is building factories in Mexico, In
dia, 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 invest
ments receive a bonus of 80 per cent to manu-:
facture in countries where money n labor
is still on the basis thst we were before the
demonstration of silver in 1873, that is the
reason they are leaving US. Every silver
country is prosperous, n almost every en-
terprise in them is based on capital from
gold standard countries. Twenty dollars
worth of Mexican Or other silver country's
goodsi is only worth sl4.74 or 1925 less than IL
would be under bimetallism and free trade.
Therefore bimetallism is a better protective
measure against them than any tariff that
II ta i.sa q. .. ~ -. bit