The San Francisco call., 1898-03-12

II FREE silver correspondent asks us to explain / one of MT. Bryan's statements about Mexican finance.
 We do not undertake to publish dictionary to de- fine the meaning of MT. Bryans statements, but we have no objection to explaining the point that is in issue.
 Mr. Bryan states that to pay $oooo,ooo Of interest on her debt Mexico is compelled to collect over $I2- 100000 in silver dollars This is due to the difference between the bullion value of gold and silver and to the fact that Mexico is on silver basis under free coinage Her Federal all collected in silver and are doubled by her having to pay her debts and interest in gold Free coinage in this country would lead the same result. It would affect nearly every private and State and municipal bond III the United States In 1894 in the midst of the panic the gold contract mortgages outstanding in California amounted to $2o2 ooo,oco. Under the Mexican sys- tenn $4o4 100000 in silver would be required to pay them for here as there free coinage would be entirely ineffective equalize the value of the two metals. The people of this State pay in taxes annually say $I8,ooo ooo and it must be in gold for the public obligations are gold contracts. Then under the Mex can system sought to be fixed upon us by MT. Bryan if our taxation is $I8ooo,ooo 1t would require $36 100000 to pay it.
 This dscloses the fact, according to Mr. Bryan's own statement, that to adopt the Mexican system would require to discharge all outstanding public and private obligations written in gold, by raising double their amount in silver. This would be the first cost of the change.
 Now in what measure would we better ourselves by this change to Mexican methods? Granting that prices would rise, that when things have to be paid for in silver those who sell them will ask $2 for what $I buys now, because, in Mexico the dollar would then be worth only half as much now, the appar ent rise in price would be taken up the necessity of paying existing debts in more than twice as many dollars as they call for and the debtor would be left just where he is
 What would happen after that will be just what exists in Mexico. Prices received in silver would apparently be double, because those who sell charge enough in silver to make the gold value of the ar tcle If silver rose in value as it approached gold prices would fall in proportion. Mir. Bryan has said that he expects this to occur But that it has not occurred in free coinage Mexico he admits for it takes than s in silver there pay ST of gold debts. II silver further decline in value those who sell will demand more silver in o der that they may still get the value of their in gold They will exact from the buyer enough silver to exchange for the gold value.
 No statute stop this Gold being the natural standard it will continue to measure values, and these in turn will be met by the exacton of enough silver to equal them.
 Our correspondent asks if gold coinage circulates in Mexico. It does not Only silver is in circula- ton there. Mexicos stock of silver money per capita IS S4 54 her gold per capita 4I cents The situation is found in every free coinage country They have practically gold and very small per capita of silver The great gold standard nations cir cuate as money more silver per capita than the total per capita circulation of the free coinage countries
 Finally, in the free coinage countries like Mexico all prices measured in silver are higher except the wages of labor Labor then, gets less and pays more a silver basis than under the gold standard It has stand the>actua depreciation in silver and has buy the necessaries of life with enough silver to make the gold price