The herald., 1896-08-10
MEXICO'S PROSPERITY
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10y WIN. v. LAHPHAR

|
say:
l believe 1t to be q much broader ques-
tion than most people seem to think;
most people look at the local effect it
will have on this country alone, while
1T is of the greatest Importance to the
whole world. We have at present more
than one-half of the world on a silver
basis. with the balance on gold basis,
with an exchange on the money from one
section to the other from S5 to 80 per cent:
this has to be paid on all goods shipped
from gold countries to silver countries,
and received on all goods shipped from
silver countries to gold countries. Under
such conditions Is it possible for these
| countries to trade with each other?
| The question is, do the gold countries
need the trade of the silver countries;
In other words, does the United States
England, France, Germany and the other
gold countries need the trade Of Mexico
| Central and South America, Japan
China. Russia, and other silver coun-
| tries? If they do, the first step to be
taken Is to arrange the money of the
world on an equal basis so that the trade
relations of all countries may be as
equal as possible to each other; this can
only be done by the universal adoption
| of the bimetallic system. The gold
standard advocates all cite Mexico as an
example of what will come to pass in
this country with free coinage of sill
yer; they predict lower wages for the
laborinG man, depression of all kinds of
business, and a general ruin for the
whole country, but they all misrepresent
the Cnndifinp nf off q i've tn,
l have lived in Mexico for the past
80 years, and have watc>led this great
change in the monetary system of the
world with great interest. Mexico has
the bimetallic system of Is to /, and prior
to the demonetization of silver in these
United States gold and silver coins We're
in circulation there the same as here;
but since the rise in the price of gold,
1t has been forced out of circulation.
and we have now only silver and paper
money in circulation there.
The proof that gold has risen in price
and that silver has not fallen. is that in
Mexico silver is worth today in the mar
ket just as much as it was thirty years
ago; while gold at that time was worth
SIG per ounce, but is now worth from
VA to $25 pes ounce. The silver dollar
OF Mexico Will purchase just as much
produce, and all articles consumed by
the people. pay as much debts, taxes,
railroad fares and freights etc. and in
fact is worth just as much in that coun-
try as 1t was before the decentralization
of silver in this country. The internal
industries are more flourisIing and her
export trade is larger than ever. Gold
has been drawn out of circulation with
out the least commercial or financial jar
whatever. Wages in Mexico have al
ways been cheaper than here, but on
par with the same class of labor in Eu-
rome. hllf instead n falltner u-a u
increased in price so per cent all over
the country since it was driven to sill |
yer basis; skilled mechanics receive as
high wages in Mexico as in this country.
When merchant from the United
States sells a bill of goods to a mer-
chant of Mexico Cor any other silver
country the merchant of Mexico has to
pay for these goods with money of the
United States or gold, and to get that
gold he has to buy draft on New York
fac o-I'1s-s.oiron aud nav f-a,,o O. - on
turally charges to the price of the goods
when he sells them; now this exchange
on money between the silver and gold
countries benefits neither country but
is a direct injury to the manufacturer
and workmen who made these goods, as
we'll as to the merchant that sells them,
as it imposes almost a prohibitory duty
on the sale of their goods to a silver
country; the banker being the only one
DoHellIeu ny lllS tAtiidiiSC. oii Ni+N
other hand, when merchant from Mex
leo sells a bill of goods to a merchant of
the United States Cor any other gold
country he receives the price of his
goods with from So to 90 per cent prem
ium added to it, as he buys his goods in
Mexico for silver and sells them for gold
In the United States therefore trade is
stimulated from the silver countries TO
the gold countries and correspondingly
depressed from the gold countries to the
silver countries, which has made 1t pos
sible for Mexico, country of but T.
900, 900, inhabitants, to export to the
United States, a country of 100000 OOO in
habtants s67, ,322 9s6 worth of goods in
the past year, and only import rom the
United States $15.130, 367 worth of goods
in the same time; and the same rule
governs trade between the gold and sill
Yer countries all over the world; and
should the present condition continue,
in a very few years the silver countries
will be manufacturing all of their own
goods. and the gold countries will be
obliged to trade with each other only,
while the silver countries will be able
to sell their goods to the gold countries
for less than they can produce them in
the gold countries. The gold man says,
we will put on a protective tariff, but the
tariff will have to be paid by other gold
countries just the same as by the silver
| countries, ana tne silver countries VIII
always have the advantage of the eX-
| change on their money over the gold
! countries, enabling them to sell their
| goods at much lower figure. Cotton,
| wool and many other raw materials can
| be produced in Mexico much cheaper
| than in the United States; all kinds of
| dye woods are the natural products of
| her forests she has the finest water
| powers in the world on her many
| ha n
| the coast, and all kinds of goods can be
manufactured there cheaper than here.
| The manufacturers of this country and
| Europe have already seen these advan-
| tages and are going into Mexico in large
| numbers to establish their factories, and
! with this double advantage of from SO to
| 80 per cent exchange in their favor on
| the goods they ship to the United States
| and Europe, what is to hinder them
! from selling them at a large profit at
| prices they cannot possibly be produced
| for in these countries, with corre-
| spending paralyzation of the manufac-
| turing industries here: the longer the
| present monetary system is main tanned
/ the more prosperous WHY the silver
! countries become, and the deeper will
! the gold countries be plunged into finan-
| cial and industrial ruin. The people OF
| Mexico are not only well pleased with
/ their silver systesl, but they would be
! glad to see the United States and Eu-
| rope hold on to their gold standard.
! Nothing but a great political upheaVai,
tla ipitiotitra Star IN which iS now be-