The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-18
EVILS OF A FLUCTUATING CUR
RENCY.
In a recent interview in ST. Louis the
Mexican Minister of Finance, or Secretary

Mexican Minister of Finance, or Secretary
of the Treasury, said:
What Mexico wants most to-day is a
fixed price of silver. What we fear most
is the continual ductuation of the white
metal. With silver up and down alternate
ly our merchants cannot make calcula-
lions for future transactions In COM
mercial sense We live from day to day.
This condition of affairs naturally leads to
general conservatism in all lines. Our com
merce is restrained, as we must naturally
proceed with the utmost care and caution
in all our business ventures
All the advocates of free and unlimited
coinage of silver are shouting to have the
United States put upon silver basis,
where. with Mexico, it will want most a
fixed price for silver and where 1.-The
most its business men will have to fear is
the continual fuctuation of the white
metal To the ordinary risks of business
the silver mine owners and their follow
ers would add the greater risk of the ups
and downs of the value of the money
with which all merchandise must in some
way be measured. Within the past few
weeks the price of silver bullion has de-
clined 8 cents an ounce. This is over
per cent. 1t is due it is said, to a specula-
tive movement to bull silver which has
failed If a dealer had purchased his goods
valued in gold and paid in silver at its bull
lion price as Mexico does, he would have
paid for them on the basis that the silver
dollar was worth 53 cents, but now he
must sell them for silver dollars worth but
81 cents in the worlds markets. If he gave
a note for the goods payable in gold prices,
he must pay premium of 40 cents on
dollar instead of AZ. If silver should adj
vance again the dealer would gain there
by, but if it should fall he would lose. In
these times of sharp competition a loss or
gain of but 4 per cent. on account of the
money used IN paying for a consignment
of goods is a serious matter.
1t will be said that the fiuctuation in
silver would cease if the United States
should come to a silver basis. for the rea-
son that the larger call for the white metal
would steady the price-that what would
be possible with Mexico would be impossi-
BILE in this country. Fortunately, there is
an answer to this claim in the experience
of the United States while the country was
on the grcenback basis Until after specie
payments were assured the gold price of
greenbacks fluctuated widely from month
to month. In the matter of the greenbacks
the volume limited, and their value
compared with gold should have depended
upon the probability of their redemption.
In regard to silver the experience and judg-
ment of two mine owners in Mexico, both
foreigners given in an interview with
correspondent of the St. Louis Globe-Dem-
ocrat, are pertinent. Mr.. Hartman, Ger
man, said
1t will be utterly impossible to make
silver go to par with gold, or $1.29 an ounce
if the United States does adopt free COIN
age. That action will not make silver more
than IS cents ounce. A squirt might
carry it a little higher. but there would be
a drop backward. With a difference be-
tween silver and gold money, fluctuations
cornered by a few men, and they would
their power to create these huctua-
ing them. The United States might pass
ali of the laws it pleased to prohibit and
punish the manipulation of the gold mar
ket. The fluctuations would be dictated
across the water. Gold would be put up
OF. down at the will Of syndlcIat ta mo mo
all of the trade and financial relations De-
tween silver-standard nations on the one
side and gold-standard nations on the other.
these fluctuations would enter. The silver
standard nations couldn't help themselves.
They would be at the mercy of the money
power in countries on gold basis
AS during the war, when greenbacks
were fuctuating, merchants marked their
goods at figures high as to insure them
against loss so, on silver basis, the same
thing would be repeated. The people who
consume would pay for all the risks taken
bv dealers. while few syndicates would
be enriched by speculation in our silver
money. as was the case with greenbacks.
The gold room, which was closed on specie
RESUMPTION. would be reopened for specula-
ton in the fiuctuation of our money.