The Indianapolis journal., 1902-10-29
MEXICO AND FREE SILVER.
Growing Sentiment for . Change I'm
the Monetary Standard.

tne monetary StamOarOs
Boston Herald.
For some time the silyerites in this coun-
try have pointed to the prosperous condi-
ton of Mexico as proof Of what country
can do on a free silver bssis- In this regard
the evidence of Senor Enrique c. Creel.
financial authority of national repute in
that country, may be 5f interest. In his
opinion. the evolution in favor of the gold
standard has already started In Mexico,
and he predicts that II will advance and
gain in strength from year to year. The
reason for this Is, in his opinion, that the
relations with gold-standard countries, the
influence of foreign capital and the credit
of the country all tend 20 induce the people
to demand a gold standard, and it Is only
q question of time when this demand will
be so strongly made that ii will have to
be granted When this time will come he
could not say. 1t might possibly be dozen
years. or longer. AT the present time he
would not advocate a change. for the re-
suit might prove a failure, and in such
| case would delay the final adoption of the
| gold standard for many years more. But
| If Mexico continues tc increase her ratio
| or prosperity and to enjoy the good gov
eminent which now exists there. he thinks
| the change may come even sooner that the
limit he has set. Mr.. Creel goes quite
| fully into the reasons Tor a change in the
monetary system, reasons which are given
| much too fully for publication at this time:
| Among them, however, may be mentioned
the decline in the prize Of silver, which,
he declares. rs at the present hurting the
general interests of Mexico.
| The agricultural interests of the country
| are divided into two clases-home consump-
ton and expectation. With the first class
| ticularly as the Mexican farmer consumes
| but a very small amount of imported goods.
| SO that the value of his dollar is only con-
| sidered for home or domestic transactions.
| But the farmer who raises anything for ex-
| port is a strong advocate of the present sys-
| tenn. He pays his labor and many of his
other expenses In silver, while he sells his
products abroad for gold: This gives him
| an advantage and an advantage that he
will hold to firmly, if it is possible In time,
however, Mexican wages may advance until
| the farmer has to pay for his help in silver
| double the rate he would have to pay In
gold. From that time on he would be no
longer interested in the retention of the
silver standard With mining, one OF the
| great industries of Mexico. labor wages
| represents nearly So per cent of the cost
while supplies represent only about Is per
| cent, and here again the great bulk OF the
expenses is paid In silver, while the product
of the industry is sold for gold, and In
many cases the dividends paid to foreign
owners of Mexican mines are also based or
gold. The railroads. too, have been built by
| outside capital to quite an extent, and or
these the interest and dividends are paid ir
/ gOl0,- ,-Wnlle tnelr rece1ptS are IN silver. Mr
Creel states on this point that he has beer
told that the Mexican Central Railway loses
100000 a year for every cent Of reduction
per ounce In the price Of silver.
There is a feeling among Mexican bust
ness men, according to Mr.. Creel, that the
gold standard countries do not have as
much confidence in the silver countries al
they do in those that have the yellow meta
for their monetary standard. For this rea
son the credit of Mexican banks Is otter
not as high in foreign countries as 1t should
| ha md ha fhnrc of ,irinv I,
change of standard would benefit th'
banking interests. At the present tim,
wages are low in Mexico. low even wher
measured by the silver standard. The com
mon laborer on the farm earns at presen
only about 81 cents day, and other labo
can be hired as cheap as 80 cents day.
this, be it understood. In Mexican, not on
own money. If gold standard wa
adopted there certainly would be no re
duction made In these wages. While tn
industries in Mexico may be assisted b.
also tends to keep down immigration, whicl
, the country unquestionably needs.
Mr.. Creel considers the labor problem
very complex one, but he is of opinion that
in the main, the gold standard will favo
the working classes, and he says:
while some business will have to suf
fer on account of high wages. or if wage
should have to be paid in gold yet am O
opinion that 1T would be better for tn
change to take place and to improve tn
present condition of our laboring classes
Let other business suffer somewhat an
find the way Of compensation. Compel ou
laboring classes to work more. Give then
better food, more strength, more nerve
more education, more ambition, bette
wages and compel them to increase tn
ratio of labor perforrled."
The great bulk of his evidence is there
fore, against the continuance of the pres
ent silver standard any longer than is nee
essary. This is the opinion not OF a Wall
street goldbug, not of a trust magnatt
o | but of a successful Mexican business mar
who knows his country and her people, an
| who sees in the silver standard a millston
which prevents Mexico from advancin
as fast as she would jndustrially if she ha
the same monetary standard as the othe
| great business countries of the world.