Historical Newspapers of South Carolina

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MEXICO AND SILVER. THE FACTS STATED AM)THE CESE ANALYZED. Tlii' Fnll of NIItit Will I Ij Stimulate BIoiiip .11 nun fuel ur cra, mi?l Li-iiil to u I'.\jmu?ioii of Tro|?icnl Agria-iiHur**, tli?> I'roiluel* of Wliirli Commit iitl Cold AI?poml?Cliou|? Sllrrp t.ooil for All ('liisii'N Itut 9m|?ort?*r*. Prom :!?' AinorU-.wi. iNews (li<j)atc!ios from the City v>l Mexico tell 11::;t il !- lie liovo'l I?y 11m' Moxierns tli-it tin* fall in tlie* j:<?1 \ price of silver, or. as it appears to them, the' !'itr ther ri<e ' ? the ]?ri of aohl. will 5: *;;iv : - -lv tii<:n 1* ? home nanuiV.ct urnrr, :mtl ]**:? ! also to : r;iJ : ! expat -ion <>! tropical ricultore, the proluet ol which command y >M prices obroad." "\Ve arc further informed thai the Mexican only ivjirets the recent fall in silver because they tear it will revive tl > talk of adopting j;ohl standard, which wouhl he ruinous to the new manufacturing industries." I pon all ol which t!i ? New York Times makes the charitable comment that the Mexicans must have ^one daft. It is sad nonsense to suppose that a fall in silver could stiinu late manufacturinjj ii. silver usine countries and exports to uoldusini!, remarks the Times, and further adds that it is hard to see how any considerable number of successful business men in Mexico should harbor any such views. Yet they do harbor such views, and thev base them nnt nn theory, hut have gathered tliein from experience. And against such experience we fancy the manufacturers and planters of Alexico would wei rh the opinion of the Times very lightly, especi ally when it asserts that they would find properity in a steady appreciation of silver, that is to say, that they would profit from falling prices. However, the Times gives its own case away, and all unconsciously tells us why it is that a fall in silver in our markets, or a rise in the premium on gold in Mexico, acts as a stimulus to inanulaeturing enterprise in that country. -An importer who knows just what he has to pay for his goods in gold and what he .' !i 11 irol Iai' f ? ?? . 1 .. ~ - M i\/? i iiviii mi mi vci < re marks the limes. -ran make his calculations accordingly. It is tIn* relalivelv sudden changes that contuse hi^ calculation-, makes .his ventures risky and discourage enterprise." Ih;t whose venture> do siudi changes make ri-ky. whose enterprise do they discour tire' The Mexican inanulact urer's' \\ by. no, the imports r's, and it the business of importation i-?lieonrafree 1 antlan increased market thus made lor Mexican inanufae turetl goods, manufacturing enter pri.-e inu.-t he encouraged. This is obvious frotn the Times' presen tat ion ot its own case. lint it is further evident that all sudden changes in the price ??t silver and of the rate of exchange on gold using countries will not discourage importat ions from gold using countries into Mexico. A sudden rise in the gold price of silver and a consequent fall in the rate exchange must lessen the vost of goods imported from goldusing countries. The Mexican importer will, under such conditions, get his goods for less than anticipated, his profits will he greater, and, obviously, importing enterprise will bo encouraged and manufacturing enterprise discouraged. Obviously it is only sudden changes in the gold price of silver in one direction, and that direction afallingone, that make the ventures of the Mex| iean importer risky and discourage his enterprise. A fall in the , gohl price of silver means a rise in the rate of exchange on gold j using countries, a rise in the pre | inium that must be paid for the' ! gohl bill for remittance in pnv * i men) for goods bough) from gold 'standard countries, and the high-' ^ i or this premium the greater mils! be the ifvcrcost of I he imported goods. Vnd it this premium rises suddenly, tlie Mexican importer will find himself called upon toj pay more for his import ations' t11<*ui lie anticipated ami ins j roiits1 will be undermined. It i- thus that a tendency ofj ' silver to fall as we measure it, and j for ireld to rise as the Mexican! measures i!, makes the ventures | ot tlie Mexican importer risky and discourages his enterprise. A ri>e ' .... in the gold price ot silver and.in verselv, a fall in the silver price of gold must make the ventures of the importer not more risky luit more certain, for instead of being treated to the disagreeable surprise of having to pay more for his goods than he calculated upon, he will he treated to the lever agreeable surprise of getting i his goods lor less money than he anticipated. Whether silver rise or fall his calculations will mis! carry, but if silver rise, the miscarriage of his calculations will be welcome. So it is that a fall in silver in the I'nited States, or ' !i rivjf? i n tl... nrnh.i..... .... l.t I.. . .. V |'i Vilillllll \/ll ^,UMI III : Mexico?for it must be remember oil that silver does not fall in Mexico any more than gold tails in the Tinted States, for the reason that silver measures itself in Mexico as gold measures itself in t ho I'nited States?must ever discourage importations into Mexico 'and encourage domestic manufacturing. A fall in tin- premium on gold must encourage importa tions and discourage manufacturing. So it is that the Mexicans, who are not at all averse to see 1 il I .. r I i nit- ii}i ijiiiiuini: oi manuiaci uring industries and their growing in dustrial indcpendenre of foreign lands, dread the adoption of the gold standard for Mexico and the disappearaneo of the premium on -old. And Mexico is not the only country that has heen thus affect e l. All silver countries have heen equally allectod. And in the mean while .Japan lias heen put in the way of reaping sonm ot the fruits of her folly in throwing over the silver standard, under which she pro-pored, and adopting the gold standard under which the indus try and enterprise ot the western nations have stagnated. .Japan did not, indeed, throw aside the advantage conferred on her industries by 111?* premium on gold when she adopted the gold stand ard. She sought to keep thut pre mium by cutting her gold coins in half, and in this way stabilized the premium on gold, as measured by her old currency at about 10b percent. In short, she tied her sell down to the gold standard,but J in a way that her producers would receive about 209 yen thereafter for every #100 worth of goods' ! sold in America of other gol using countries. Originally the yen was pract cally equivalent to our dollar,hi in adopting tho gold standard Jj pan made her new unit of vain equivalent to soniethingtless tha the then value of the Mexica dollar. Tho Mexican dollar wti then worth about IS cents in goh and tho .lapanese enjoyed tli same bounty on exports to gol using countries as their neighboi ?the Chinese. Hut tie4 Mexica dollar has since fallen to-!." cent and tlie rate of exchange on gol using count l ies in China has rise to about 22.". or a premium of 12 percent. Now it happens th; with ihi-> change in external trad relation!' then' has come littl change in domestic trade. Thet has come no gen r d rise in priet of domestic productions, no a< vance in wages, no increase i the cost of production. Vet IV products selling for $100 in goh in gold using countries. (lie n turn in diver dollars lias been ii creased to $225, where a te weeks ago it was not $209. ? the export trade from China inu he encouraged at the expense ( the Japanese, whose return f< goods sold in gold using eountrii has not heeit increased by the r< cent fall in silver. < )n the other hand, the cost the Chinaman of every .fit I worth of goods bought from go using countries has been inereast from $200 to $255, or by aboi eight per cent. In other word the last tall in silver has bei equivalent to the raising of I customs tariil'of eight per con and must exert the same stimuli to domestic manufacturing China as such raising of a custon tariff, a customs tariff that con not be gotten around by undo valuations, would exert. Tli stimulus has not been shared by Japan. Hut the most serious elFect 1 Japan of this recent fall in si 1 vc and raising of the gold promiu iu China to 12." percent., whi her own premium has reniaim fixed at 10!)., must ho felt in It trade with China. Japan has bet building ii]> with China a eonsii erable export trade in cottc yarns. Her manufaeturer> ha\ been on e?jual footing with tho: of Shanghai. Hut now comes tli further building up of the g<? premium in which Japan has n< shared. This premium must rah the cost to the Chinamen of van bought in Japan by s per con unless, indeed. the Japanese, i order to l.ol.l hi- market, rediie< 11i< ^?*11;n_r price, and sees lit 1 selllor 'dd yen what lie former! asked inn for. So the Japanof inanufaelurer finds himself und< a severe handicap in eoinpetiii for the markets of China. II linds what i> virtually a custon tarill' of s per cent reared u against his jroods. We have said that the Mex cans believe that the recent >ilvi decline in London an 1 New Vor! and per se, the rise in the pn iniii 111 on gold, will immense! stimulate their home manufacti ring. Now again we ask, wh; The simple reason is that the coi of everything bought abroad h;i been enhanced. A few sho weeks ago the Mexican silver do lar was worth 48 cents in goh Then it cost tho Mexican in porter to pay for a bill ( d $100 of goods bought in Now 1 York. To-day (ho Mexican doli lar is worth but 45 cents in gold, | it and a draft to settle a bill of $100 i i- of goods in New York costs the le Mexican importer $222.22. What . n the result of such changed n conditions must be is obvious. is The Mexican importer must raise 1, the prices asked tor imported ' e goods, and this must offer an op Opportunity to the Mexican tnanu- { > I act u re r. The price at whicli he < n j must se\l to meet foreign compe- 1 s.; t i t ion is raised, consequent lv lie!' d liuds it easier to compete, he finds < n a readier and more prolitable J 5 | market, ho prospers and nianu it ' fact wring is stimulated. ie' Hut, says our gold mmiometal 1 lc list, does not the cost of nianu e fact wring rise with tlie fall ill sil ;s: ver, do not wages rise as silver 1 ; tails? The answer is, they do not. n The gold price of silver has fall >r|en <"> per con' within a few week*. 1,; but we would be niiicb surprised a-' if wages bad ri*en bv anvtliing ' I ' 11 i like <i per cent. We very much w doubt if the wages paid by the >oJ Mexican manufacturers today j st j are any high r than those paid r>f j six or eight weeks ago. Here is a >r' statement very imndi to the liking eg j of our gold monoinetallist. "Ah"! [j. lit' says' -if silver lias fallen and I wanes have not risen tin' wa^c-1 to i earner must lie injured, thej )0' striking prosperity of the tnanu ; Id I faeturer is made at the expense of .(1 his hands." lint not so at all. The; ut wage-earner lives on goods of do Is, mestic production, he is not a >11 large consumer of foreign goods, a and it is the price of these latter that has alone been affected by us the fall in silver and the rise of in the premium on gold. So the purus chasing power of the wage of the Id wage earner has suIfored no dim J r- inution because of the fall in tho I lis gold price of silver. Consequently in he has not, and will not, sutler from such lull. On the contrary, to he will gain. The stimulus to in>r> dustriai enterprises must make n I increased demand for his labor, I | hence he can find readier and fuller einplovment for his time, | 1 i '(,1 and thus earn larger wages,albeit j er (here is no increase in the nominal n i rate of wages. d And finally this increased de | mand for his services must lead I to an advance in wages, not an advance coming direct ly and concur M rently with the fall in silver and ls hence not increasing the cost ? I Id manufacturing wit h such fall, l>ut ! coming wit h t he stimulus given io ... iadust rv and t lie increas mI demand made I ?r labor by the growth of M new industries. Such advance of 'i wages has already been recorded ii indupan?an advance!hat lias no s kept pace with the rise of the premium on gold but which has ; Iv more limn kept up with tin* in ( reused cost ol living, ol theneces i sarins ol' life, an increase that i> *r sure to como with indiMrial ile <1 velopim lit ami prosperity. [,. We have further made note o| , . 1110 fact that Mexicans look upon ll , , i the decline in the price of silver ''.not only as a stimulus to home manufacturing, hut as likely to i lead to a rapid expansion of trop ,r ' ical agriculture, the products of l_ which command j;ohl prices. And 1 airain we ask what reason is there1 '' for this belief? The simple reason y is that the price received for a- evorytlutiB sold abroad has been. yt enchanced. With the Mexican dollar worth IS cents in New i | York, as it was a lew weeks! IS since, the Mexican coffee planter would realize.f?0?S..'M in Mexican 1 money for every 1100 worth ol i 1. coffee sold in New York. To-day > i- with the silver dollar at 15 cents [ *' | Continued on m-vmiti i??rfe. Tutt's Pills I Cure All Liver Ills. t Prevention better than cure. Tutt's Liver Pills will not only cure, but if taken in time will prevent Sick Headache, :lyspepsia,biliousness, malaria,^ constipation, jaundice, torpid liver and kindred diseases. TUTT'S Liver PiLLS ABSOLUTELY CURE. m ipwo & S"' M f. JLl A A AiLiJlJUl III MEN W" will sent! ymi hy mail in plain iwknffi'i AIISOtlTKLV FltKK, I lie povv orfu I DR. HOFFMAN'S VITAL RESTORATIVE TABLETS, *a I'll :i 1 < a 1 ti :i r :i t to permanently t cur.' IUST MAX MOOD, WKAK- * N ESS, V A RICOCKl.K: stops forever nil iioiiut 11 i*>iI drains. speedi'y restores lieu It!, .mi' perfect man uooil. We have faith in our trealinent and if we could not cure you we would not send our medicine PKICIC to try, and i pay when satisfied. " WESTEltX MI)ICI?; CO. (Incorporated), KALAMAZOO, MICH. f. h.:;-iy. SPANISH JACK mamrn. 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