The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1897-08-11

~NO~AAS -~-@~-O---"->1
Conditions of Trade, as Seen By Those
Engaged in 1t.
City of Mexico, Augustl 6.-The con-
tinual fall of the price of silver and the
corresponding rise in exchange has
reached the point where this country is
brought face to face with what promises
to be a serious crisis. No sophistry
can hide the real conditions of affairs
here. 1t isTall very well to say that
Mexico can live within herself, and can
raise on atsilver basis natural products
that she can sell abroad on gold basis.
This would be perfectly satisfactory if
wealth resulting from such condition
that property could bear high rate of
taxation and thus enable the government
to meet the interest on it's debt without
any extra strain.
Of course everyone knows that the
tropical exports of this country such
as coffee, vanilla, and rubber, are COM
paratively SO small that they do not cut
any figure in crisis like the present
one. At this moment Mexico bonds are
steady in London, principally owing to
the scrupulous exactness with which the
interest has been paid. These debts are
in gold and the interest has to be paid
in gold, and at the present rate of ex-
change that interest is excessive. 1t is
only matter of time, unless there is a
favorable change in the price of silver,
when this republic will be unable to
endure the strain longer. Reputation
has an ugly sound but something very
much like itmust come if present cir
cumstances remain unchanged for the
better
| That the financial policy of this govern
ment Is directed wisely there is no doubt,
but all fnanciers are powerless as mat
tiers stand today.
Portions of the American press see
only one hope for Mexico, and that is the
adoption of gold standard. That ap-
pears almost impossible, and the great
bulk of the population would not under
stand 1t. Nobody can foresee what such
a course might lead to. In fact, of the
course Of procedure in changing a
nations standard of value the masses
here know nothing. If Mexico did not
owe cent abroad, and if there were no
large foreign companies organized abroad
on gold basis and operating here, the
question could be settled easily, but I'M
| fortunately this condition does not ex-
list. The great railway corporations and
other foreign companies here are in
identically the same position as the gov
eminent. They have to meet interest
in gold with circulating medium that
is ever decreasing in value. 1t does not
matter how great the business enter
prises and their earning capacity may
| be because the money earned in a de-
preciated currency is bound to remain
Inadequate to their obligations abroad
Unless they increase their earnings more
than 100 Der cent, which Is impossible,
the only alternative is to regard their
foreign debt as contracted in silver-that
is. repudiation It seems hard to peo-
pie here that the credit of this govern
ment. which is now so high, and the ex-
cellent foreign investments here should
be injured through circumstances over
| which they have no control. But facts
are facts. and it will be interesting to
| watch what will happen unless there
| is sharp rally in the price of silver be-
| fore long.
| On the other side it should be said that
existing conditions are likely to lead to
the founding of many industries here,
but it will require many years under the
most favorable circumstances to make
these new industries offset the present
r1iinous condition of exchange.