Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-03-07


commerce and credit, think that with be-
ginning made the transition need not take
many years, and can be accomplished with
out serious interference with trade and in
dustry. =
Not International Bimetallism.
In asking the cooperation of the United
States the Mexican government clearly set
forth that 1t was not seeking interna tional
bimetallism in any guise. Lest a false idea
should get out that the immediate adop-
ton Of the gold standard was. in view, it
made the specific statement chat it was
not advisable, in the opinion of the govern
ment that the republic Of. Mexico should
in the present circumstances adopt a pure
gold currency. Yet the measures 1t pro-
poses open path to that end.g;
The direct benefit to Mexico from the
willingness Of the United States to CO.
operate in devising a system which will
give stability of relationship to the money
of the gold and silver using countries is in
the announcement which 1t affords to ask
help from the European nations, and espe-
cially from Great Britain and France. The
United States having given It's adhesion,
Mexico now can Apress the English and
French governments to cooperate, with
every probability of success. They cannot
well refuse what the United States has
granted. "a
1t gives a high idea Of the statesman
ship with which the Mexican government
Is guided to review the steps taken in or
der to meet the emergency which has arisen
within the past two or three years. The
disastrous effect on the customs revenues
which are payable in silver, was overcome
by temporary measure giving them sub
stantially. gold valuation for a fixed pc
Rod. Then the government appointed a
local commission, composed of leading pub
lie men. bankers and merchants to study
the conditions with view to permanent
legislation. The chairman Of this commits
sion is Pablo Macedo. one Of the most dis
tinguished lawyers of the Mexican bar
who has spent much time in Europe He
Is an influential member of the Mexican
congress and Is looked upon as the orator
Of the common people in that body. He
was member Of the Pan-American con-
leading part in formulating it's fiscal
recommendations
What the Commission Nav Find.
1t need cause no surprise if this commits
sion in its study of internal economic con-
ditions finds that Mexico Is more ready for
the transition to the gold standard than
has been the common belief. Until the
fluctuations in exchange became so great
and until the drop in silver became so pro-
nounced 1t was easy to see how the output
Of the Mexican silver mines formed the
basis OF satisfactory monetary system
Under 1t the cotton mills and other do
nestle industries were developed.
Yet all the time there was the one draw
back Of low wages. Both domestic and for
e1gn capital were invested In manufactur
Ing industries with a view to the export
trade rather than to local .consumption
The silver standard, in fact was serving
as a protective tariff but on a different
basis from that which Is understood in the
United States, where it's supporters justify
it on the ground of high wages and in
creased domestic consumption. In Mexico the
wages have not been high and local con-
sumption has not been increased materially.
Another evidence of the thoroughness and
thoughtfulness with which the Mexican
government matured its policy was seen in
the visit to the United States Of Mr.. En-
r1que Creel and Mr.. De la CARA. both men,
bers Of the Mexican congress Mr.. Creel is
leading banker and has been called the
Pierpont Morgan of Mexico He conferred
extensively with public men in Washington
and with financiers in New York and else
where He has been somewhat in advance
Of the rest Of his countrymen in advocating
the gold standard. Two or three years ago
he took this position.
Another prominent Mexican who foresaw
his countrymen for it was Mr.. Joaquin de
Casasus Mr.. Casasus was a delegate to
the international monetary conference at
Brussels in 1890 He is the author of the
banking laws which have been enacted dur
basis Of Mexico's excellent Barking system.
The Mexican Dollar.
That the Mexican dollar is q historical
monument resume of its share in civiliza-
ton shows. The romance Of sfhe Mexican
mint is unequaled. The mint was estab-
lished in 1885 by royal decree, and no gold
was coined till nearly $50 years later. Dur
ing the Spanish dominion; which lasted UNI
til Mexican independence was recognized
IN 1921 the gold coinage only amounted to
$69,OOO,O0O, while the silver output was
more than - 600 100000. Up to July, 1901. the
silver coinage had reached fhe total Of
81, 414, 204. 600
In the latter years Of the sixteenth CEN
fury, or within fifty years after the mint
was established, the Mexican dollar was
in circulation in the Antilles, in the coun-
tries Of South America and in the Philip
pines. It was not until 1895 that 1t was
demonetized by the Spanish government In
Cuba and in Porto Rico. It is said that
in the beginning Of the eighteenth century
the Mexican dollars were tested by Sir
Isaac Newton.
In the first century Of the Spanish dis
coveries and colonization the merchants
Of Cadiz and Seville sent their cargoes
to Vera Cruz. These were freighted by the
burros over the mountain trails and through
the passes to the City Of Mexico Here they
were exchanged for silver dollars, which
carried to the port OF Acapulco on the
Pacific coast. Thence the money was taken
to the Philippines in the galleons which
came back with silks and spices and other
products Of the distant islands. Again
the burros transported the merchandise,
this time clear across the country to Vera
Cruz, where 1t was transshipped to Spain.