Arizona republican., 1903-02-12

understanding exists as to tha real no suggestion of free silver cOinIge in it. There is no attempt to maintain 2 parity between the two meals. as metals, at the ratio Of 32 to l, or dny effort to extend the gold standard 10 silver using countries without upset ting business. Its purpose is to bring about stability Of exchange between the gold standard countries and such silver-using countries as shall enter into the proposed agreement. In other words, the suggested ratio of 9 to 1 is not Q, coinage ratio between the two metals, but a basis for an exchange ratio between gold and the silver coins Of tie countries joining in the agree ment.
 The present Mexican dollar is worth it's bullion value. It's coinage is unlinl- ited, and the same may be said of it's fluctuations. The result is disastrous in the extreme, paralyzirg business, undermining confidence and retarding progress. Mexico wants to adopt the gold standard. Should she do so by adopting bodily the United States mon- etary system, chaos would follow. It would mean the sudden appreciation O: the Mexican dollar from 3S cents to S1. No words reed be wasted in de- scribing the folly of such proposition.
 What Mexico does propose and ask, however, is that an agreement be en- tered into with her by those nations having comme mercial interests in the far east which shall make gold the nom inal and legal, as it is now the actual, standard of value, this result to be ac- complished, without disturbing busi- ness, by system of limited coinage of silver, backed by proper gold reserves and guarantees, which will not at tempt to lift or control the price of sil- yer, but which will have the effect Of insuriHg stability oi exchange as far as monetary systems are concerned.
 To accomplish this Mexico suggests
 
 of 16 to l, because that would increase the value oi the Mexican dollar from 3S to 90 cents, instead of from SS cents to $1. Naturally, some initial disturb anCe to trade and social conditions would follow, but nothing of a revo- lutionary character like the chaos in- volvcd in the other plan. Neither does this mean that Mexico would coin q silver dollar twice the. size of the pres ent dollar. She would simply adept q legal ratio of 9 to l for purposes of computation ana exchange, and con- tinue to coin, but only on government account, dollars of such weight ard fineness, and in such quantities as may i be agreed upon- Then the silver coins issued under the agreement would, in the opinion of the supporters of the plan, circulate at fixed value, regard l less of the fluCtuatio in the price of silver, and exchange would fluctuate only in response to natural trade con- ditions, cxectly as it now fluctuates be tween Great Britain and the United States.
 How this proposed monetary system is expected to work can be seen frcm the following example: A merchant in Mexico receiving from the United States S100 in United States exchange | in payment of a debt would, under cx- istilg conditions and at the current rate of exchange, be able to obtain therefor s27O in Mexican currency. Six | months ago, before the recent heavy drop in silver. he might have realized only $40 Mexican, and six months hence, if he is called upon to pay a debt of $100 in the United States. and | the price of silver continues to fall, he may be called upon to expcnd $290 Mexican to purchase S100 in United States exchange Under the proposed plan it is believed that the Mexican dollar, coined in limited quantities only, at the nominal legal ratio of g to l, and secured by gold, would retain a constant value of 50 cents in gold Then a merchant receiving $1OO ir ! United States exchange would always be able to obtain $2C0 Mexican for it and if he wanted to remit $1G0 gold tc the United States he could always pur- chase the exchange for $200 Mexican The same illustration and the same reasoning apply to the Philippines q: conditions nCw exist there. and as they
 would exist were Secretary Roots p!ar for q distinctive currency put into op
 eration.
 ond0uerS fin Daupsr