Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-29

new law goes into effect. In other words
the Mexican silver miner receives $2.02 for
a given quantity of silver for which form
erly he would have received $3.50. II sill
yer remains between sixty and sixty-fve
cents mining will be practically unaffected
by the new law; II silver rises above sixty
hve cents there appears to be no reason
why all the silver dollars in the country
should not go into the melting pot and be
shipped abroad as bullion. II silver re-
mains as at present, below sixty cents per
ounce, it Is not possible for low-grade
mines working with a narrow margin OF
profit to continue operations without incur
ring heavy losses, and several companies
are already contemplating suspension OF
opera tions.
In the future a miner paying SIS for
freight and treatment charges on an ore
containing silver only, worth $50 Mexican
currency per ton, will find his operating ex-
penses increased 10 per cent for each five
cents U. S. currency decrease in the price
or silver per ounce, and vice versa; and the
fortunate high-grade miner mining COM
pick silver ores worth over $40 Mexican
currency per ton. with freight and treat
ment charge Offset by the gold, copper and
lead values contained. will experience an in
crease or decrease of per cent in his op-
Grating costs with each variation of five
cents in the New York price of silver.
The government has endeavored to
counterfeit the increase In operating costs
by reducing the taxes on silver from to 4
per cent of the gross contents, and by re-
ducing the taxes on mining claims to ap-
proXfmately one-half; but when silver is
apprecfably lower than GO cents an ounce
In New York this assistance will not be of
material benefit to producing mines. At the
same time it Is unquestionable that the
benefits of a stable currency are of more
Importance to the development of Mexico
as whole than the injury which low
quotation Will cause the silver-mining in
dustry. although 1t represents today more
than one-quarter of the whole business of
the country.
Foreign Capital Expected.
1t Is expected also that this change will
attract large sums of money to Mexico for
investment. Two years ago the United
States consul general at the City of Mex
leo reported that at least five hundred mill
lions of dollars of American money had
been invested in various enterprises in the
Mexican republic during the previous
twenty-five years, and S2J0,000,0O0 curing
the previous five years. Since that esti-
mate was made at least 20 per cent addi-
tlonal has gone into plantations. mines,
manufactures and railroads. and those who
are familiar with the situation report that
vast investments by American syndicatas
have been depending upon the adoption of
the gold standard.
The commercial development of Mexico
has been very rapid. During the admins
tration of President Diaz beginning with
1854. the population has increased 30 per
cent, the public revenues have increased
from $3OOO0OO0 to $125 900 900; the reserve
In the treasury from nothing to $35, O00, 900;
the banking capital from 100000 to
$70O.0O0.OOO; the foreign commerce from
$45,OOO.O0 to $500. 100000; the value of real
property from $2S5 600. 5000 to 81, $50 600 600;
the railways from 567 miles to 10 3S7 miles;
the passengers carried per year from four
to fifty millions. and the earnings Of the
railroads from 81, 1914. $40 to 500. 993, 535. The
number OF schools has doubled: the number
Of teachers has quadrupled and the average
attendance of pupils has increased from
1853. SO to 661. 155. More than one hundred
and fifty million dollars has been given by
the government by way of subsidies to rail-
ways; more than hundred million has
been spent In the improvement of harbors.
building docks, tidewater and other pub
lie works.
No country In the world. unless 1t be
the United States. has made more rapid and
healthy progress and the political condi-
ton are such as to promise that this ad-
yancement will NOT be distIrhed