The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-23

Ueodun9 VI Une amount OK American cdpi-
tai invested In Mexico and other silver
using countries, which altogether is likely
20 be over 81 ,000, 900 900 gold. The amount
invested In MEXICO, according to the official
report OF the Consul General, Mr.. Andrew
bariow, lis over $500, 600, 900 gold. The field
IN Mexico Tor investment Of American capt.
tal Is very large. Mexico Is the nearest
country to the south, its natural resources
are immense, the relations Of the country
mat the accumulation OF capital in the
unted States, and its large volume OF
manufacturing should find an important
outlet In Mexico, whose population 10 in
creasing, and whose climate, natural re-
sources, stable government and other
conditions are inviting capital"
CHINA has expressed herself as favorable
TO the Mexican proposals and memoran-
dunn attached to diplomatic note from
the Chinese Legation to Washington and
here published, gives n table of the imports
OF certain silver-using countries. with
these interesting comments thereon.
~ VIII be noted that the largest amount OF imports
IN the table Is credited to the Chinese Empire This
large volume OF trade Is threatened In the present
state OF the Chinese fiscal and currency systems
WIN decline the limit OF which no one could fore
see. The heavy indemnity Imposed by certain
Of the Powers upon the Chinese Government has
led 10 large offerings Of silver on the Chinese mar
ket and has diminished the power Of that country 10
70 materially reduce the existing export trade to
China from the United States Great Britain, France.
Germany and other countries.
The foreign trade OF China while standing at the
head OF the above table in the order OF magnitude.
Is small at present in proportion 10 the population
and resources of the Chinese Empire. The exports
from the United States to China have multiplied
many fold within twelve years. and now exceed
of merchandise into China. however, amounts TO
only about 80 cents per capita In gold. and affords
might h6rnme 4 q nj a
ten years from about SIPS to nearly IS per
the Empire Of China, with its nearly four hundred
s mon Psoge would .h1 the are SSs
trade OF the United States. The encouragement
Of commerce so important as this seems TO the
most serious consideration Of the Western Powers.
II would afford an outlet for the produce OF the
labor Of many thousands OF workers of Europe
OF the capital OF those nations and would dot the
Pacific and Indian oceans with tho nags Of a carry
Ing trade large as that now required In the entire
commerce between Europe and the United States.
With regard to China there are u1-
doubtedly certain difficulties in the way
and 1t might be a question whether her
guarantee to provide herself with gold
deposits at home and abroad in order to
establish and maintain a stable silver
currency would be considered altogether
reliable or not. Moreover she is not likely
to move in the direction Of currency or
other reform, with undgnified haste.
Her present system Of independent mints
and profits on coinage--in each viceroyalty
gives such unlimited opportunities of
"squeeze" that the Mandarin, the banker,
the comprador and the "shrof" will GER
tainly resist any innovation to the utmost.
In addition to China, the Straits Settle
ments, the Federated Malay States, Indo-
China and the Philippines have given as
surances Of their readiness to contemplate
measures such as those advocated by the
Joint Commission, and it is probable that
most Of the Central and South American
republics will follow suit
The passing OF the new Philippine Coin
age act and the satisfactory report just
received by the Director of the Mint as
to the margin of profit In the shape Of
seignorage, which will yield a substantial
contribution to the Philippine redemption
fund, afford comment in favor OF Mexico's
proposals. A curious reversal Of economic
argument in her desire for currency re-
form is pointed out by the Berlin CORE
spondent of the London Times. Whereas
the advocates of bimetallism used to base
their cause on the theory that COUNT ies
with a gold standard were being seriously
prejudiced by the depreciation Of the silver
currency in the silver countries which were
enabled to undersel their rivals and de-
velop their export trade to an abnormal
extent, the silver countries themselves
are now arguing that it Is in their own
interest that their currency should be
on a stable gold standard basis.