Arizona republican., 1905-05-06
No More Silver Standard Countries.

The republic of Mexico is now firm
 ly established upon the gold basis. The
 act for that purpose was introduced
 last November and became law the following month. A prohibitive duty upon the importation of Mexican dol
 lars became effective January 1. The
 free coinage of silver ceased April 16.
 The gold standard became operative
 May l.
 The Mexican dollar is to remain cur
 rent at a fixed value of 50 cents in
 gold, maintained by limiting coinage
 and supporting 1t upon gold reserve.
 A special dollar is to be coined for
 the export trade. since Mexican dol lars form a large part of the cur rency of Asia. For the present the government is to help mine owners
 to secure loans on their silver bars pending demand for them for internal or export coinage.
 Mexico is the largest silver produc- ing country in the world and it was found necessary to do something for the mining interest. The first effect of this change is that the United States treasury which valued the Mexican silver dollar at AT cents in April will value 1t at 4s.s cents in May.
 No country worth considering now remains on the silver basis. The great financial revolution that began in Germany in 1871 has been completed. The gold basis now prevails all over the world, though all nations do not put it into effect in the same way. There are three different forms of na- tional coinage and currency among the nations of the earth, which are best illustrated by Great Britain, the United States and Mexico.
 In the highest form, which Is that of England. Germany and the Teu- tonic countries of Europe generally. gold is the legal tender and silver Is used for token or subsidiary coins. In the United States, France and the Latin Union countries silver Is legal tender on the 1s to l basis. but gold is the standard and silver is maintain ed at more than twice It's bullion val ue by a great gold reserve with ex- in use.
 In the old silver using countries. 1 India, Japan and now Mexico. the old | value of the silver coins has been cut | in two and the new value, or the 32 l to l basis, is to be maintained with | gold reserve and exchangeability in l use. This is the plan we have adopted | for the Philippine currency and 1t will | probably be adopted in China when | that country gets coinage of it's own.
 Notwithstanding the different meth | ods of using the gold basis. all these countries can trade with one another | without serious loss in exchange, be- | cause the value of the coins of each | all over the world is fixed by the | common gold standard. Our silver | and paper currency, like the French | silver and paper currency. is current | everywhere at a small discount to | cover the cost of sending it home, be- | cause people know they can get gold | ,or 1t there, as they can get gold for French silver in Paris.
 The silver coins of Mexico, Japan, india and the Philippines are current n the same way at just half the value 1y weight, because their governments will redeem them in gold at that rate. These countries have gotten rid of the ,ld rate of exchange in their foreign rade, which fuctuated with every change in the price of silver bullion. It is as if all countries had a com non currency.