The News & Observer

MEXICO AND FREE COINAGE
The Washington Post cannot be called a free silver paper. It recently printed an editorial that clinches the statements and arguments in regard to Mexico made by Justice Walter Clark, of Raleigh, and Prof. Tiernan, of Salisbury, in communication to this paper. We quote:

"It will, perhaps, be remembered that The Post has on several occasions in the past discussed certain silly and extravagant statements by cuckoo orators and newspapers touching the financial condition of Mexico and the general worthlessness of the American silver dollar. In reply to the assertion, so frequently made by "sound money" speakers, that the Mexican silver dollar was a thing beneath contempt, and that free coinage of silver had brought the Mexican people to penury, The Post has always replied that the silver dollar buys as much in Mexico as the gold dollar does here, and that, instead of tobogganing down the steepest side of Avernus, Mexico is prospering on thoroughly healthy and legitimate lines.

"About a month ago Mr. Allen, of Utah, delivered a speech in the House, relative to finance, and as part thereof read a letter from Mr. A. V. Temple, manager of the Mexican Bureau of information. Mr. Temple has been a resident in Mexico for the past twenty-six years, and throughout that period has been engaged in business and connected with financial and commercial enterprises. It is to be supposed, therefore, that he speaks with authority when he says: 'I would say that a Mexican dollar buys to-day as much in this city as it did when I came here, and at that time a Mexican dollar was worth $1.10 in gold in San Francisco. The price of corn, beans, flour, wearing apparel, etc., is almost exactly the same as in former years. Of course, there are fluctuations due to good or bad crops, but the average cost of all the various articles which go to make up the expenses of a family are almost exactly the same as when gold was at par.'

"Of course, every one who has visited Mexico and in that way acquired information, knows this to be true. The orators and newspapers referred to, however, have been going calmly ahead reiterating the stupid fallacies in question-even amplifying and aggravating them by adding that not only is the Mexican laborer's silver dollar worth less than half of the Yankee laborer's gold dollar, but he doesn't get as many of them for his work. In a word, they hold up Mexico as an awful example of the ruin and misery that follow, in the train of silver coinage.

"But Mr. Temple tells a very different story, as will be seen:

"You will note by the printed matter sent you the wonderful increase in the income of the government, and also of the Mexican Central Railway, which I think will compare favorably with that of governments or railroads on a gold basis. Also, the price of Mexican securities has steadily been advancing in spite of the increased premium on gold. The fact is that an abundant supply of good silver dollars, which everybody can get and everybody can spend, seems to make people more cheerful, harder workers, and induces the capitalists to go into new enterprises. Although there are bank notes in circulation in this country, they are represented by an actual store of silver dollars, so that at a moment's notice the same can be converted into coin. They are, in fact, like the gold certificates of the United States, except that ours are issued by incorporated banks. Mercantile failures are rare, and manufacturing establishments, especially those engaged in the manufacture of wool and cotton, are paying large dividends. Banks are also paying from 10 to 16 per cent. a year on their capital stock." While the perfect peace and order which Mexico has enjoyed for the past twenty years has had a great effect on the development and prosperity of this country, I also believe that our silver basis has helped us prosper as much as any other cause.

"The premium on gold also tends to bring it to this country. European investors, taking advantage of the premium on gold, are more willing to come here and make investments in mining, manufacturing, etc. than if this disparity between gold and silver did not exist. While doubling their capital in bringing it into Mexico, they can go into production of articles for export which are sold for gold: as, for instance, coffee, rubber, hides, vanilla, and kindred products, so that practically they double their capital and yet receive a gold interest on their investment.

"A silver basis seems to tend to the increase of a larger number of small incomes rather than a small number of larger ones."

"It seems to us that the 'sound money' advocates had better drop Mexico as an object lesson. There is enough to be said in favor of the gold basis without lying about silver in Mexico."