Middletown transcript., 1898-07-23

rniliarity with general conditions here
in Mexico as affected and influenced by
its coinage system promptly and fully
reveal the foundation claims Of the ad-
yocates of free coinage in the United
] States as assumptions which find no ex-
| istence in the practical experience of
I Mexico, nor would they find existence
in any country where the free and un-
limited coinage of silver prevailed. The
claims referred to assume that such a
system would furnish an abundant sup
! ply of money. that it would create a
source and control of such supply with
which the common people would have
more influence and connection than with
our present system, and that with the
free coinage Of silver would come to
our country some peculiar independence
which it does not at present possess rela-
tive to its currency system and moneta-
ry supply.
How Coinage Affects Conditions.
Conditions almost the opposite ex-
treme from those suggested by such
claims exist here in Mexico, and they
are SO directly related to the coinage
system in operation here as to make it
absolutely certain that they would ac-
company the free coinage of silver wher-
ever it may be adopted. Mexico is at
the present time and has been during
recent years in extreme need of more
capital for the development of her great
natural resources. During this time of
need the mines of Mexico have been
enormously increasing their output of
silver and the mints of the republic
have been open to free coinage, but the
circulation of money has not increased,
and the government and the common
people alike are impotent and powerless
relative to all that affects the currency
of the country, its volume and its value.
The free coinage of silver in Mexico has
no effect in determining or sustaining
the value of silver, and the experience
of this country will be repeated wher
ever such system is adopted. All lines
of legitimate trade and business trans
actions are hindered and embarrassed
by the fuctuating value of the curren-
W,
have added largely to the profits of spec
ulation and even to the dividends of the
banks of Mexico, which always make
their interest charges include all risks
as to fluctuations in the uncertain value
of free coinage currency.
There is not one third the amount Of
money in circulation here for each in
habitant as in the United States, and,
notwithstanding its restricted circula-
tion, the silver currency Of Mexico, fol-
lowing, as it must, the day by day ex-
perience of the silver market, has lost
more than half it's former value in the
hands of the laborers and small produ
GERS here, thereby reducing their wages
and profits to that disastrous extent. No
system of coinage could be further re-
moved from consideration of the needs
of the people or influence by them than
is the free coinage Of silver as practical
1y illustrated here in Mexico It is in
dependent of both the government and
the people, the silver mines of Mexico,
as in the United States, being largely
owned and controlled by foreigners,
who control and dispose Of their out
puts as will best serve to advance their
individual and corporate interests. Mine
owners of Mexico find markets for some
Of their silver in the free silver coinage
countries, as do the silver producers of
other countries, but further than that
Mexico possesses no opportunity or ad-
vantage not fully shared by all gold
standard countries in trading with free
silver nations. Silver is bought and sold
and exchanged between such countries
at its market value, no attention what
ever being paid to the coinage assump-
tions of the several silver using coun-
tries. The market value of silver is not
determined in Mexico or in China, nor
would it be in the United States if the
latter country should adopt the free
coinage of silver England and Ger
many and France and the other coun-
tries of Europe have more to do with
the production of silver than have the
countries which are dependent upon it
for coinage purposes, and they will per-
sistently profit through any attempt to
give fictitious value to silver bullion or
silver coin and profit, too, at the ex-
pense of the country making such an at
tempt.
A further assumption that a health
full and helpful degree of protection is
afforded through the free coinage of sill
yer finds no existence in fact here in
Mexico. Tt is necessary to pay more
than double prices in the purchase Of
any article imported from other coun-
tries because of the. little comparative
value of the currency of Mexico, and
this increased price is the much vaunt-
ed protection said to be afforded by free
silver. 1t applies to the tea Of free sill
yer China as well as to the coal and
clothing of the United States, and it
adds the same double price to the fuel
and machinery, much needed and not
produced in Mexico, as to the few arti-
cles of importation which compete with
home production. It is SO called sys-
TEN Of protection which seemingly finds
most favor with those who have always
opposed the home favoring protective
system of the United States. Its effect
has been to, place all the profitable in
dustries of Mexico in the hands of for
eign capitalists and foreign corpora
tions. The extreme poverty of the mass
es and the inability to buy anywhere,
rather than stimulative of home buying,
have been the result Of the free coinage
of free silver in Mexico.
recognize the fact that these asser-
tions are general and perhaps inclusive
Of more than the accompanying details
may seem to warrant, but they will be
followed by series Of presentations
relative to the past and present effects
of free and unlimited coinage in Mex
leo, whom it favors and whom it in
jures, which l believe will leave little
to be desired in the line of illustration
and detail PERRY F. POWERS.
City of Mexico.