The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-08-23
MEXICO'S MONEY QUESTION.
HER GREAT NEED OF A GOLD
STANDARD CURRENCY.
Loss In Balance Of Trade Through
Fluctuation I'm Sllyer's yalue--PrOpOs-
ais OF Joint American and Mexican
Commission in Conference with Flu.
ropeaD Governments and Finanolers.


The members of the joint American
and Mexican Commission on International
Exchange Rates, who left for Europe in
May. have met with a most favorable re-
ception in their conferences with repre-
sentatives of the British, French, Dutch
and German Governments. In London,
Paris and at The Hague it was determined
that the conferences should remain private
and confidential In Berlin their result
has been published through semi-official
agencies. According to the Berlin CORE
spondent of the London Times, the Mexican,
like the American, delegates, and like the
European Governments and financiers with
whose representatives they have been
comforting, approached the question from
tho monetary point Of view, with the object
OF trying to secure a regulation OF the silver
currency OF their own and other Silver
countries" on a system similar to that es-
tablished by the Imperial British Govern
ment in India in 1893. The fall in the value
OF silver, beginning in the early 70's, and
the financial embarrassment caused by
the consequent downward tendency OF
the rupee led to the passing OF an act in
that year closing the Indian mints to the
coming Of silver till the rupee should rise
in intrinsic value to the arbitrary gold price
Of Is. 4d.. then fixed by the Imperial Govern
ment. The value of the rupee then grad
ually rose and financial conditions improved.
In 1899 further law was passed making
the gold standard more effective, and a
timely comment on the success of this
financial policy was afforded last week by
the Secretary Of State for India in present.
ing the annual statement Of the Indian
budget in the House of Commons. He
announced that there had been substantial
surpluses in the past three years, amounting
this year to over SIS, 900 ,0O0 The fuctua-
ton in the exchange value OF the rupee
during that period had been only u per
cent, and during the past year only X per
cent, while the Indian merchants had
benefited enormously by the stability OF
the exchange
Mexico to-day finds herself in position
analogous to that Of India in 1893. Her
business and labor interests suffer in conse-
quenoe Of the constant fiuotuation in the
value Of silver, and one of her greatest needs
is money currency substantially fixed
upon gold basis. Her credit is good and
her commerce is rapidly increasing and
millions of dollars Of American and British
capital are being invested in the develop
ment Of her resources. Between the years
1882 and 1902 the value of her exports had
risen from 20 1000, 900 pesos to 1853 900 900
pesos in silver, while the value in gold Of
these exports had only risen from about
20 900 900 to "A 900 600 pesos. The silver value
of her exports had thus increased some five
and three-quarter times. while their gold
value only increased some two and three
quarter times Hence it is reckoned that
Mexico loss in ten years, incurred in con-
sequence of the depreciation OF her cur
rency, amounted to $1,000 900 pesos on her
general exports, while a further loss Of
23, $50, 900 is estimated in respect of her
export Of silver alone. On the other hand,
the gold value Of her imports has decreased
in the same period by l4,0O0 600, as COM
pared with the total decrease Of about
so 600 900 in the gold value Of her exports,
including silver. Hence, as the Berlin
correspondent of the London Times puts il,
"the general conclusion is drawn that while
a country with deprecated currency is
in position to increase its exports to Coun-
tries with a gold standard, it obtains
constantly decreasing amount of foreign
products in exchange and thus incurs an
economic loss which is not balanced by the
development in it's export trade"
To remedy this unsatisfactory state of
affairs Mexico proposes to raise a loan and
create gold exchange fund for the pur-
pose Of putting her currency upon gold
basis, A a preliminary step her Govern
ment appointed two commissions, one in
the City of Mexico, to make a careful ex-
animation Of the local conditions concerning
the proposed new monetary system, and
another to deal with the characteristics of
international exchange and to procure ali
with other interested coun-
tries as to what should be done to obtain,
if possible. general solution to the propo-
sition, establishing a certain uniform COL |
value of the new currencies, the units of
weight and fneness. the system of maintair-
ing the stability of exchange and also the
purchase and distribution of silver bullion,
which may be needed for coinage pur-
poses A preliminary report issued in
London by Messrs. ENRIQUE G. Creel, Lui.
Camacho and Eduardo Meade, members
of the latter commission, presents the
general proposition, together with some
material bearing upon II, in
concise and interesting way
The importance 10 Mexico Of the matter to
be investigated by this commission and it's
Of an inaugural address delivered by the
Mexican Minister of Finance, Senior Liman-
tour, "Our country" he said, as ex-
situated; partly because one
third Of the worlds output of silver comes
from it's mines partly because the mining
Of silver is, after agriculture the most i'm
portant of the national industries partly |
because silver, in addition TO the role which it |
enacts IA commodity in our foreign COM |
merce serves as ollr monetary standard and |
as the measure of all other values al home. |
and partly, last of all, because that factor |
Of our wealth represents two-fifths of our |
exports and ia the prime instrumentality |
which paws for the articles which we pur- |
chase abroad and which settles our trade !
balance" II is pointed out that Mexico, |
in appealing to the aid Of other nations. |
does not ask Of them to make any change in |
I heir several monetary systems nor solicit |
from them any direct help on behalf of silver |
that might imply pecuniary sacrifice or |
contrary to their monetary needs. |
There is no faint of bmetalism in her pro- |
posals nor s there any desire Of an arbi |
trary attempt to force up the price Of silver. |
Her wish is to fix a value to the silver cur |
rency, and not To- the silver bullion In |
other words, She wants to have a currency |
with known and permanent value in gold, |
not on the principles of bimetallism, but |
within the lines Of the gold standard system. |
Mexico is going through a very inter /,
nsting period of prosperity" said one of |
The members Of the commission in an inter- |
view embodied in this report:
"rhe only thing that is giving some trouble TO the
business community Is the low price OF silver anu |
he fact that Mexico Is ON the silver currency basis.
"'Thr low price OF silver has reduced so much the |
power OF the Mexican dollar that the |
S suffering It's consequences, The price |