The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-10
SILVER IN SILVER COUNTRIES.


would desire. To break the force of this
OBJECT lesson they insisted that the people
of these countries were not as badly off as
many supposed, that they each enjoyed a
degree of prosperity and that Mexico. es-
pecially, was far more prosperous than it
mad ever been before. There was a great
deal of figuring done, with quotations of
prices, wages, exchange, ETC., to prove that
Mexican workingmen and wheat growers
were really better off than those in the
United States.
The situation in the countries named has
changed materially since the election. and
II the advocates of free silver ever make
another campaign in this country which is
doubtful, they will have to adapt their ar
guments to new conditions. To begin with,
Japan has adopted the gold standard. The
law to this effect was enacted in March
last, but it will not go into force until Oct.
l, the interim being allowed for the govern
ment and individuals to prepare for the
change. This important step was not taken
hastily by Japan. 1t is done in pursuance
of the recommendation of an imperial com,
mission appointed in September, 1893, to
investigate the causes and effects of the
fluctuations in the value of silver, and to
suggest the best monetary standard for
Japan" The report of the commission rec
commended the adoption of the gold stand
ard, and in spite of strong opposition it
was adopted and carried out AS a sample
of the arguments used against it take the
following from an editorial in a leading
paper of Japan of March last:
japanese statesmen however. propose to
force this big change down the nations
throat at seven months notice. They take
trade is already against the country to the
extent Of fifty sixty millions annually.
and that by adopting the gold standard,
Ine export trade will certainly receive a
check, and the import trade an impetus
Again, the financial history of the
past two decades shows gold steadily an
preciating and silver depreciating. 1t also
SHOWS that every gold-using country has
been overtaken by a period of depression,
whereas every Silver-using country has
basked in the sunshine of prosperity. Japan
Is now to pass from the ranks of the latter
to those of the former. Her economical ex-
perlence, since she emerged upon the stage
of international competition, has been
small. Her progress is only in it's initial
stage. If she has been fairly fortunate
hitherto she owes much of that fortune to
the aid of silver Is 1t not mistake on the
part of the government to discard the sill
yer CTuICH lUdC mas supported her Mating
steps and to expose her to the risks of a
disastrous fall? This change, if it is ever
to be made, ought to be postponed for sew
eral years
This sounds very much like some of Bry-
ans arguments during the last campaign,
though it is more argumentative and less
demagogic. However, the law was passed
and will take effect Oct. l. 1t changes the
standard unit of value in Japan, the yen,
from silver to gold, and fixes the coinage
ratio at 1924 to l, which is equivalent to a
price of 90 3-16 pence per ounce OF silver in
London. There has been a good deal OF
discussion as to the motives of Japan in
making this change, but whatever her mo-
tive may have been, the change has been
made. The present government of Japan is
progressive, and Japanese statesmen be-
lieve the adoption of the gold standard will
attract capital to the country and increase
its prosperity in every way.
Turning from Japan to Mexico we find
the silver standard still in force, without
any active movement for a change There
seems to be no doubt that in some respects
the silver standard has been beneficial to
Mexico, owing to peculiar conditions The
country has certainly enjoyed a higher de-
gree of prosperity and made more progress
during the last few years than in any for
mer period of its history, but that is doubt
less due more to the wise and stable gov
eminent it has enjoyed under President
Diaz than it is to the silver standard. The
latter may have had a beneficial influence
in checking importations and developing
manufactures, but these advantages have
been acquired at a fearful cost in depre-
ciated currency loss by exchange, ETC. But
it begins to look as if the prosperity of
Mexico, at least that part of it caused by
free silver, is more imaginary than real
The recent rapid fall in the price of silver
has caused something like a panic in Mex
leo. Accustomed as they are in that coun-
try to debased currency and fiuctuating
standard, they were not prepared for the
discovery that silver has stopping place
in its descent. A dispatch from Mexico
City in the Sunday Journal said
The continued fall in silver and CORE
spending rise in exchange has reached that
point when this country is brought face
to face with what may be a serious crisis
No soph1stry can hide the real position
Of affairs here. 1t is all very Well to say
can raise on silver basis natural products
that she Gan sell abroad on a gold one.
This would be perfectly satisfactory il
there was such an enormous increase of
wealth resulting from such CONDITION that
it could bear high rate of taxation in
order that the government might be able
to meet it's debt interest abroad by such
means without any extra strain.
Reputation has an ugly sound. but some
thing very much like it must, under present
circumstances, finally result. The
great railway corporations and other for
eign companies here are in identicaly the
same condition as the government. They
culating medium that is ever decreasing
in value. 1t does not matter how great the
business enterprises and their capacity OF
making money are because the money
earned is inadequate to meet their obliga-
tons abroad.
There is no installing the meaning of this.
1t means that Mexicos silver debauch is
approaching an end, and that he- states
men and intelligent business men realize
the danger of the situation. Mexico has been
a free-silver country for centuries, and I'M
der stable government, she might continue
to prosper on a silver basis fer her
domestic and internal affairs are concerned.
But her foreign business and foreign rela-
tlons are rapidly extending, and with re-
gard to these she is at the greatest possible