The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-03
GOING TO A GOLD BASIS.


Mexico seems to be moving with fair
rapidity toward gold basis. with the token
value OF the Mexican silver dollar fixed at
80 cents In gold. A part of this movement.
namely, the conferences OF the joint COM
mission from Mexico and the United States,
with the financial officers of European gov
ernments. has been heretofore outlined in
these columns. That commission is now So
journing in st. Petersburg. having received
assurances of cooperation In London, Paris
and Berlin.
At the same time a purely Mexican COM
mission has been sitting for some months
In the City of Mexico. preparing recon-
mendations to the Mexican government for
changes in the currency system OF the
country, and this commission is nearing the
end of its labors under the guidance of Mr..
Limantour, the very able Mexican minister
OF finance. Modern Mexico, in it's current
issue. while disclaiming any official infor-
nation as to the conclusions of the commits
sion, says:
1t is understood. for example, that the
monetary policy which it behooves Mexico
follow has been outlined by the commission
In recommendation which is substantially
70 sfhe effect that the adoption of the gold
standard by silver-using countries on the
basis of silver coin of unlimited legal ten
der, but having a fixed value in gold. would
greatly promote the development of those
countries and would stimulate commerce
between them and the gold-standard coun-
tries. besides augmenting everywhere the
opportunities for the profitable investment
al fha and ood will
with which the United States took up the
initiative of Minister Limantour, giving it
the support OF American prestige and infiu-
ence in Europe, has. among thinking
classes here, been considered as a fresh
pledge of the friendiness of the great
neighboring Republic toward Mexico.
In the meantime, the local monetary COM
mission has been voicing the views of Min
lister Limantour to the effect that whatever
monetary policy be decided upon as best
freed from the evils of a fiuctuating ex-
change, its chances of success will be en-
HANGED. If. with unimportant notifications
line of policy be adopted by all those coun-
tries.
Specifically 1t is said that the commits
SION 81 oeneves tnat appronmate , uhioF LOT NY
yer money. In the countries henceforth 60
ing on the gold basis. is desirable. What
but for some
past the consensus of opinion has pointed
in the direction of the 50-cent dollar. This
apparently Is the conclusion that has found
favor with the commission, which Is said to
believe that If in future serious changes do
not occur in the price of bar silver it is to
be desired that the coinage ratio between
gold and silver money in countries that are
now on the silver basis and may In future
go on the gold basis be fixed approximately
at 80 to l.
The encouraging point to be noted in this
statement is the evident understanding on
the part of the Mexican government and
press that the only way they can have
stability OF exchange in their dealings with
the rest of the world is by going to a gold
basis. The problem of uniformity in the
gold value of the silver coinage of Mexico,
China and other silver-using countries is
not so serious as might at first appear. The
two great coins in almost universal use in
Mexico, China and the Orient are the Mex
lean dollar and the Hong-Kong dollar pat
termed after 1t and of practically the same
bullion value. An exchange value of 80
cents in gold for this coin will not be diff
cult for the governments issuing 1t to MAIN
tain with anything like a reasonable gold
reserve. If the siver-using countries once
take the important step of going to the gold
basis. the rest is matter of detail that can
be adjusted with comparative ease.