INTERNATIONAL AMERICAN MONETARY UNION. REPORT OF THE COMMITTEE ON MONETARY CONVENTION. [As submitted to the Conference, March 12, 1890.] To the President of the International American Conference: The Committee on the Monetary Convention has duly considered the interesting matters submitted to its deliberation, and has invited all those who are willing to come forward and give their views for or against the common silver coin to be a legal tender in all the American States represented in this Conference. A great mass of interesting material has been collected which would form a volume, and all possible consultations have been held with experts so as to form a competent opinion. The text of Article 6 shows clearly that the committee. could not go outside of its expressed limitations, and it therefore presents its report in conformity therewith. The committee, or its ma jority, regrets to report that a unanimous opinion has not been arrived at, and that a minority report will be introduced. Mr. Coolidge has handed in a report with much data and eloquent arguments. Mr. Estee has also presented one which has great merit and does honor to its author; both of these are attached, as also those of Srs. José Alfonso and E. A. Mexía. REPORT OF COMMITTEE. The committee presents to the Conference for its consideration the following: The International American Conference recommends to the nations represented in it (1) That an "International American Monetary Union" be established. 624 (2) That as a basis for this Union, an international silver coin be issued, which shall be a legal tender in all the countries represented in this Conference. (3) That to give full effect to this recommendation, there shall meet in Washington a commission composed of one delegate from each nation, which shall determine the quantity, value, and proportion of the international coin and its relation to gold. That this commission meet in Washington in a year's time or less after the final adjournment of this Conference. E. A. MEXÍA. J. ALFONSO. JUAN F. VELARDE. CARLOS MARTINEZ SILVA. WASHINGTON, March 10, 1890. REPORT OF MR. MEXÍA, A DELEGATE FROM MEXICO. The sixth section of the act of the Congress of the United States approved May 4, 1888, reads as follows: Sixth. The adoption of a common silver coin, to be issued by each Government, the same to be legal tender in all commercial transactions between the citizens of all the American States. Pursuant to this article a committee has been named to report upon the method of carrying into effect the idea. which it sets forth. According to all the data at hand the importations into the United States from the several countries comprising the Spanish-American Republics exceed by a considerable amount the exportations of the United States to the same countries; the excess, which is a very large figure, is against the United States, who pay it in gold. The object in giving a common silver coin to the nations. which compose this Conference is to facilitate the commercial transactions, and to avoid those great fluctuations in silver which have been the cause of serious difficulties to the nations using this metal, and at the same time have 563A40 rendered burdensome the commercial intercourse between the United States and the Spanish-American Republics. This committee essays the task of discovering the method of counterbalancing these difficulties in such a way as to make it prejudicial neither to the Government of the United States nor to the Spanish-American States. Two methods present themselves: The first-adopting as a general basis the project suggested by the Secretary of the Treasury of the United States, Mr. Windom, who proposes the issuance of certificates of deposit in exchange for silver bullion deposited, giving to the certificates the value the bullion may have in the market on the day of its receipt, and redeeming said certificates upon the basis of the market value of silver on the day of redemption. This method, important as it is, on account of the position and talent of its author, is still in the form of a bill and subject to alterations when it shall reach discussion in the Congress of the United States; it lacks, therefore, a definite basis upon which the committee could formulate a report. It is clear that it would be impossible, or at least very difficult, for this committee to present a project based upon that of Mr. Windom, when the latter might be defeated, or not be acceptable to the majority of the House of this Congress, thereby entirely repudiating the idea; however, it would not be difficult for a like scheme to be adopted by the several countries here met together, each one receiving the deposit of the bullion and issuing promissory notes, or certificates of deposit, under the same conditions as those of the Government of the United States. I repeat, this is still a hypothetical case which should not at the moment occupy our attention, but rather should we follow the course of the debates in the American Congress, so that they may serve us as a guide in the future. Another project which appears to be the easiest and most practicable, for it is within the reach of all, that is to say. of the masses, is the adoption of a silver coin of one or more denominations of a design and value hereafter to be agreed upon, based upon the dollar which now exists in the United States of North America. A 50-cent coin would also be of great utility, if it were given a value equivalent and proportionately equal to the aforesaid dollar. The probable production of the United States is to-day from $59,000,000 to $60,000,000 of silver per annum; that of Mexico from $15,000,000 to $50,000,000, while the other Republics of Central and South America only coin some $25,000,000, more or less. The issue of this international coin should be equitably distributed between the several countries in proportion to their population and coinage, leaving always a margin for the natural expansion which might and would result from this monetary union. The circulation of the international money should be compulsory among all the nations represented in this Conference, as regards the dollar, and with respect to the 50-cent piece, only in payments of the latter amounting to $50 in each case. A monetary commission might be created by the governments interested, each naming one or more representatives, who should assemble and occupy themselves exclusively with the details of issuing the aforesaid international coins. The amount coined by the projected Monetary Union to be limited to $- per annum, the monetary commission meeting every three or five years to determine in assembly the increase or diminution of the amount to be issued. The great importance of this Monetary Union can not be denied, for without prejudicing any one outside of our own limits, it greatly benefits the industries of the SpanishAmerican nations, of the United States, and of all which compose this Conference; it increases the wealth of the world, for it stimulates the production of silver, and, giving it a fixed value, prevents those terrible fluctuations so dreaded by merchants and producers. Establishing a fixed type would serve as a basis for all commercial transactions and would inhibit one nation from so influencing exchange that the benefit might always accrue to it, at the expense of the American continent. E. A. MEXIA. REPORT OF MR. ALFONSO, A DELEGATE FROM CHILI. The law of the 24th of May, 1888, which authorized the calling of the International American Conference, said in the sixth clause, section 2, that the Conference was called to consider "the adoption of a common silver coin, to be issued by each Government, the same to be legal tender in all commercial transactions between the citizens of all the American States;" and on the approval of the report of the committee named to report upon the committees that should be named, the Conference resolved that a committee of seven individuals should study and present the bases for a monetary convention between the countries represented in this Conference. The undersigned, a member of the special committee, having studied the point submitted to his consideration, is of the opinion that the first question which should be decided is, if the basis presented for his attention forbids absolutely that gold coin should be legal tender together with silver, or, in other words, whether the plan which should be submitted to the consideration of the Conference would fall back on the silver coin alone, excluding the gold. Although the sense of the sixth clause, section 2, of the law lends itself to an affirmative answer, it is evident that the agreement arrived at by the Conference on naming the committees did not limit the work of this committee to a convention on silver coin, recommending that it present the bases for a monetary convention without stating the kind of coin. A closer examination of the clause mentioned shows, moreover, that by it the gold coin has not been either expressly or partially excluded from the combination which may be proposed. But setting aside this question of hermeneutics, in the opinion of the undersigned, the idea and the purpose which have dominated in this matter do not make incompatible the circulation of both coins, and can the better be realized with the adoption of bi-metallism. The end that is aimed at is that there should be throughout America a common coin of equal weight and equal |