El Paso daily herald. (El Paso, Tex.) 1881-1901, 1897-10-01
THE GOLD STANDARD.
Important Letter From Minister Lii
mantOur of Mexico.

Finance Minister Limantour has re-
Gently written the following letter TO
Mr.. Ottoman Haupt in Paris:
My dear Sir:-Your e5tee med letter
of 2lst July came duly to hand, and L
take pleasure in answering it, being
DESTROYS of showing my appreciation OF
the iaudable motives which animated
you in communicating to me your opiD-
ions respecting the monetary question
in Mexico.
~ assure you that your labors as
specialist in these matters ere well
known to me. Indeed, your principal
works have place in my library; L
have read them always with interest,
and continue TO consult them frequent
ly.
'You are quite correct in saying that
the mouey question is no longer a sub
iect for mere academic discussion on
the convenience of the single gold
standard or that of the double stand
ard, but is an essen TALLY practical pro
blem which presses Gay by day with
more urgency for study and solution.
The study of it has for some time oc-
cup;ed the department under my
charg", and, as you will comprehend
the government follows with close at
teution the various phases presented
by the monetary question 10 general,
and du y weighs, under all their as
De acts, the results VIII oh are derived.
sit is evident that there reigns
throughout the world, on account OF
this question, an unmistak able panic,
under the influence of which many ma
tions, with or without rea on, frora
motives of interest or simply through
spirit of irritation, are changing
their monetary system and dashing
silver into az abyss. 1t is no less
"a a her Snch as
India and China, which consume i'm
mense quantities. of the white metal,
have diminished or suspended their
purchases: and this is beyond all doubt
the production has also increased con-
tinuously and with rapid strides. The
com bi alton of all these circumstances
has produced, or at least precipitated,
the degradation of silver.
ut is a situstiO fatal and final
which admits neither of remedy nor
of ameliOration-sO you think. |, for
my part, am rot yet convinced oil
| that, but independently of the
opinion L hold on the fundamental
question, there exist very strong rea
sons why Mexico should not change
her monetary system: at least, while
of these economic peculiariti-s exist.
'In my reply to Mr.. Jacoby, which
you have read, 1 pointed out and par
IlCuld lLtu tll1 bNo S'oSSCo VI III LII u L
| ties which lie as stumbling block in
the way of our exchanging the silver
stan dard for that of gold. The first OF
these has reference to the difficulty OF
calculating the proportion OF gOlo
necessary for our circulation, ard the
second (plainly the more serious
borders on the impossible, lying in the
necessity for retaining the gold in the
country, preventing its expor tation.
hos III
mercial balance; her imports consider
ably exceed her exports, but in addl
ton to the value of these she has tC
pay abroad the service on her foreign
debt, the interest on bonds and the
dividends on the railways, as we'll as
of a mul titude OF industrial and mining
concerns established or exploited with
fore gn capital.
SIN he prOsperC us years this inequ :
ity is partially neutraized by the in
vestment of fresh European capital in
the cou ntry, but this factor of compeu-
saiion disappears completely in times
of depression, and with more reason
when silver is suff -ring continuous
depreciations.
"Now, of the sum total which must
be exported for these different pur-
poses, 50 or 80 per cent. is represented
by silver and the 40 or 45 per cent re
naming by other mineral and agricul-
tural products: or, say, in dollars, s. xty-
five millions of dollars silver, as against
45 or so millions of all other artic. e5 of
export.
Under these circumstances, what
means could be found to retain the gold
which would be purchased and escape
the deception which other nations have
Understanding cen, without being
able to prevent 1t, the draining away
of their gold 10 foreign countries?
Frankly, l have not been able to salts
factorily answer to myself this ques-
ton. While silver is in circulation it
is we'll known that. by Gresham 8 law
the gold will inevitably disappear; and
to limit the circulation OF silver in the
country which produces more of it
than any other in the world is not to
be thought of. Neither is it posi- BILE,
in my opinion, to issue gold certificates
in order to keep that which is in the
treasury, because if those certificates
were not redeemable at the will of the
holder, very delicate question of
credit would be brought in, and we
would expose ourselves to very un-
pleasant contingencies and unforeseen
disaster: and alternatively the GER
tificates would be Immediately convert
ed into gold, and this exported in its
turn. l terminate this letter, assuring
you that it will always give me pleasure
to know your opinions on these mat
ters which are 20 familiar to you, and
which you cultivate with recognized
distinctiOn.-I remain, sir, your
obedient and attentive servant,
81. Y. LIMANTOUR."