Iron County register., 1897-09-16
aExlco.s mouRLE
Z Rtna'zeiaI' and Commercial Crisis
and Ita Cause.

/ &49S7S&EA3AA
and It's Cause.
City Of Mexico-Exchange on New Xorh
rose Mo1day On the fresh drop in silver to
ID. and IN some cases 40 was asked. Bank
| srs were IA doubt as to what rate to maze
| In view Of the condition OF the silver
market. Dealings were nominal Ex-
change On London went to 21L pence, the
| lowest On record, and implying for 1hiS
| government. in Hseeting the interest on its
sterling debt, less at the rate OF s., ,000 90
/ loss by economies and using the surplus
funds. but bankers here say the time has
come when something must be done, and
] the debt should pay 3 lower rate of inter-
est than six per cent and also that Mexico
/ is entitled to relief in view OF the punctual
payment of her gold interest under trying
| circumstances. It Is not to be denied =
very anxious sentiment prevails. as the
people have come to expect q still further
decline in the value of silver and many
predict Ii will be forced to q point where the
| dollar viii be worth 80 points in gold. I'M
| portations will be generally reduced and
all the interests of business except exports
| will be affected. The commercial crisis was
hardly expected as merchants were not,
rs rule, owing heavily abroad. The gov
| srnment and the country are confronting
q serious situation, which is the worst for
many years.
The above is dispatch recently
flashed over the wires by the Associated
Press. A serious crisis exists in Mex
leo, and that, too, because of that coun-
try's bimetallic standard. This much
cannot well be denied. The gold stand
ard champions seem indeed to have
scored triumph. Mexico faces a
financial and commercial crisis because
she cannot keep her two money metals
at parity. The logic is sound and
clear.
But looking again the logic may not
seem so clear. Witnesses in court are
required not only to tell the truth, but
the whole truth. A half truth il often
times lie, and so it is in this case We
are told that fluctuations in the price of
silver has brought about the critical
situation, but goldites will not tell us
what has brought about fluctuations.
Our European creditors naturally have
no great desire for us to know that
their own Vaccinations have succeeded
in making the great disparity of the
worlds two chief money metals.
What has caused the vast slump in
silver? No more silver is being mined
than has been in the past. More of it is
being used in the arts and industries.
On the other hand, new gold fields are
being opened up, and vast quantities of
the yellow metal are being thrown on
the market not only by recent discov-
cries, but also by the improved proc
esses of mining and extraction. 1t is
a legitimate question that is raised:
Is it a natural law that is responsible
for the f1uctuation? Goldites have failed
to explain the f1uctuation, and until
they do it in a satisfactory manner
Mexico in distress cannot figure in the
argument.
Mexico, silver Mexico, by the confess
sion of the New York Sun (whose gold
standard convictions were so strong
during the presidential campaign as to
cause that erstwhile democratic organ
to flop to the support of a republican
candidate), Mexico only few weeks
ago was IN food of prosperity. New
railroads were being builded and for
eign capital was fast seeking invest
ment within her boundaries. During
this period her currency was on BIZ
metallic basis.
Recently by a lie judiciously circu-
lated in the New York papers certain
railroad stocks of the Vanderbilt family
gained enormously in their earning
power until the lie was given emphatic
denial by rival moneyed combination.
The moneyed interests are not quar-.
reling over the gold standard. They
are agreed upon this one point, that it
gives them greater opportunity to plum.
der and squeeze the people than any
other system ever invented. Is 1t
strange that these interests should now
be able to send gold a-kiting to the
enormous premium which it has
reached? The money power is with
out heart and without conscience.
Would it not be strange were they not
to exert the power they have.
In London the price of silver has been
arbitrarily fixed every day for many
years by few shrewd financiers. The
New York exchange follows the London
bulletins. Mexican prosperity on a sill.
YER basis has bothered these London
money sharks, and they have simply
decided to put down the screws little
tighter. Japan and Peru have been
forced to adopt the gold standard; now
it is Mexico's turn.
We need sound money and more of It.
The money that has stood the test of
time and that benefits the people is
based upon gold and silver, coined with.
out other limit than that imposed by
nature, at the ratio of fifteen and half
or sixteen to one.
The methods of Wall and Lombard
streets will ultimately come to light,
and right must triumph in the end.
This is our hope and our encourage.
ment.