Democratic Sentinel, Volume 22, Number 21, Rensselaer, Jasper County, 4 June 1898 — OUR INTRINSIC DOLLAR [ARTICLE]

OUR INTRINSIC DOLLAR

The Indianapolis Smt’nel says: “On/ of the most interesting points connected with our occupation of the Philip* pine islands and the question of holding them permanently is the circulating medium of that region. Ct appears that our government has officially determined to recognize Hie superiority in the islands of Mexican money over our mon* e v *ve q note thestatement as published in ou* event: g gold huge ntemo vary, the News: ‘ rhe government haspurch'ased 259,060 Mexican silver dollars which Gen. Merritt will take along to defray the exp uses of he expedition. This ahiountjis not e cpected to last long, but more will be sent him from time to time. By parcha* sing Mexican dollars a great saving is made. It is possible to obtain Mexican dollars at 46 cents each, thus obtaining 'orone Ym rican dollar two Mexi an ones ana leaving 8 cents over toward 'he purely ase <>f a third. In other w rds Uncle Sam was able to buy 250,000. Mexican dollars for $116,000. They were bo’t in San Francisco,

In the Philippines a Mexican dollar will buy more than an American dollar, so that the expenses of Gen. Merritt’s ex" pedition after it once lands in Manila will be less than ones half what the' would oth i> vise be. As to the soldiers, they will f re ex tell utly under this arrangement, for they will, of course, be paid, accoi din / to law, American mot ey. The paymaster will give each soldier tw< Mexican dollars for every American dollar due him on pay day.”

We have awaited some denial i>r explauation of this report but. it appears to be a ccrrect sla 1 ement of t e facts as to the purchase of the Mexican dollars and the intention to us *. them. Presumably this is nol done without aful. knowledge of thir facts in the case. On iis face it looks like a shrewd business transaction, but if it be a fact that the people.of the Philippines value the Mexican dollar higher than the American dollar on account of-mere ignorance, it looks very much like playing a confidence game on our new and unsusoectng wards. On the other hand, if the Mexican dollar is j eally worl h more than the American dollar in that region there must be something in th ts eory that the stamp on he dollar is what m ikes it valuably il is well known that the Mexican d filar contains more sil ver than our dollar, and possibly the Mexican dollar may be a legal nder in the Phil.ppines, as it used to be in this ountry,while our dollar s not Wh at ever may better eason of t we have the assurano j that a Mexican dollar will buy more there than an American ollar and that Gen. expects to save half the expenses of his expedition by the purchase and use of this Mexican ' oin. Tt is is a striking and instructive situation. But it suggests a great deal more than the fallacy of gold oug theories oi intrinsic valu », and parity, and all that sbrt of thing. The banking oon.o tions of the Philippines are with Hong Kong and Singa* poor, and the money system is t’.e same as in China and the straits settlements. It is eviQent that this.valuation of silver gives au immense advant-

age to traders of these conntrios over those of gold standard countries For illustration, the chief exports of the Philioniaes are hem > an 1 its man* u ;ctures, tobacco, sugar and coffee, on all of which we impose a duty except coffee. Ihe trader who sells these goods in this country for American money, and with that buys Mexican dollars, which are more valuable ia the Philippines, musi more than double his money by that transaction, or, in other words, he gets his goods there for less t’mn half their actual value as measured by our money and our valuation of Mexican coin. This w ipes out our tariff completely an 1 enables them to sei 1 in our markets lower than any competing gold|stand ltd country. Of course we are at tne same d isud vantage in competing i th them for the :e of any < th r country that imposes a tariff. This would account for the notable prosperity o f silver standard cour t 'les, nd the general depression of traae in gold standard couitrie

The report of Gen. "erritt’s to Ziss Williams of CnKo should not raise any faTflVaMtes in the breast of the SpoKrds... Pittsburg Post. Coal is king/ but wheat is prim- miliister.