The Providence news. (Providence [R.I.]) 1891-1906, 1896-09-17


have had to look to the United States
for that corn and have had to pay more
for it than they would have paid if their
money had been as good as American
money.
''Of course" explained Mr.. Morton.
with a smile, "the theory that Mexico
would be much benefited by free coin
age in the United States presupposes
that prices of products in that country
are going to remain under free coinage
about as they are under the present
standard.
Gall of your railroad business in
Mexico is done ON silver basis?"
"Yes. Our passenger and freight tar
ifs are all calculated in silver. The on
ly time we take gold into consideration
is when we have 70 meet obligations
abroad"
Suppose the United States should
adopt free coinage and be able to main
tain silver on parity with gold; what
would be the effect on the railroads Of
Mexico?'
"we would pay dividends ON our
stock"
( Suppose the United States should
not be able to maintain silver at par
ity with gold, but should be forced to
drop to the silver level with MEXICO;
what effect would that have ON Mexi-
can railroads?"
"No effect. We would be just where
we are.
"How is the gold obtained to meet
the interest ON your railroad bondsT
"We buy it; take our silver and pay
the difference. about 81. s8 IN SILVER for
81 in gold at the present rate OF ex.
change"
Suppose American railroads had to
buy gold to meet their interest charges
and pay as much difference in silver as
Mexican roads do; could they stand itf"
1T would fall pretty hard ON some
of them"
"The claim is made in the United
States that Mexico has prospered great.
ly on the silver basis. :"
"That is true in q sense. Mexico has
added largely to her wealth. Certain
interests have made a great deal OF
money by raising products on silver
basis and selling them under the gold
standard to ether countries. Take coffee
culture to illustrate. The Mexican
coffee is very superior article. 1t can
be produced for cents pound. Mexi-
can money. For considerable period
il has been sold in Vera Cruz for 10
cents a pound, American money. The
profits have been enormous. They have
prompted large American investments
in Mexico. In other directions much
money has been made by the difference
between production on q silver basis and
disposal on a gold basis. But the labor
of the country has not shared in this
benefit. The rapid increase in wealth
has been limited in the main to capital
lists. These, you will find, are opposed
to the adoption Of free coinage by the
United States. Under present con.
ditions, with American money worth
twice as much as Mexican. the oHpes.
tunities for investments in Mexico arc
very inviting. The opportunities are
being taken advantage of. Naturally
men with lands TO soil or otherwise in
terosted directly in these inducements
TO foreign capital prefer that the United
States should continue on gold basis. I"
"Mr. Morton. how would the Mexi-
can government look upon the sdop-
tion Of free coinage by the United
StatesS'
II think tho government would be
glad to see IL. OF course. no official
opinion could be expressed. Itwould 20
considered indelicate for the Mexican
government to do that But my impress
sion is tho Mexican government feels
that free coinage by the United States
would operate 10 the advantage Of Mex
ico Laredo tTex.) Letter in St
Louis Globe Democrat