El Paso daily herald. (El Paso, Tex.) 1881-1901, 1900-12-19
In Mexico That There Is A
Real Money
Stringency
TREASURY SUPPLY
Will Be Let Out In Part n the
Effort 10 Relieve the Pres
sing demand For
Silver Dol ars.

While the government and the banks
of Mexico have endeavored to suppress
the news of the money situation in the
republic, it is becoming generally
known that the severest money panic
that country has ever known is now
on.
Business has been good this year but
with all this the country is in de-
piorable condition financially and many
wealthy men as we'll as nearly all the
smaller capitalists are suffering severe
ly.
Thousands of people who rank as
prosperous cannot get the necessities
it's value.
The shipment of silver from Mexico
to the oriental countries has taken al
most all the ready change from the re-
public and now not enough is left to
transact daily business.
The Chihuahua Enterprise had
lengthy article on this subject last
week and explains that the govern
ment is coming to the rescue with all
the silver reserve it has in the treas
ury. This money will be placed in the
banks to relieve the present stringency
grinding out dollars.
Those who are best acquainted with
the situation state that there is plenty
of money or securities in the country
but it is paper. gold. and foreign mon
ey that will not circulate in that coun-
try.
George Hilzinger, manager of the.
Banco Minero here and in Juarez. is
probably better acquainted with the
conditions than any other man in Ell
Paso. He said last night that the panic
was peculiar one and without a paraI-
lei on this continent. Mexico has
more money than she knows what to
do WITH said Mr.. Hilzinger, land yet
many people who own large mines
ranches and other property cannot buy
the necessities of life These very peo--
pie too have thousands of dollars in
cash but they cannot use because it
is not the money of the country
Mexico is now more f1ourishing
than it has been for years and the only
trouble is lack of ready cash. This con-
dition of affairs was brought about by
the heavy expectation of Mexican silver
dollars. which is the circulating money
of the country. There has been about
$50. 600 per day going through Ell Paso
every day for five months. This has
drained all the silver out of the coun-
try and what is left is no more than.
collateral.
The Banco Minero in chihuahua
has thousands of dollars in American
money in the banks in New York but
it is only security and worth nothing
in Mexico. 1t is the want of small
money that has created the panic The.
mines. factories and railroads in Mex
leo have to pay of their employees in
silver. They demand it for no other
money is convenient in the markets
and since so much of it has been ship
ped out it is almost impossible to get
sufficient amount to meet the weekly
pay rolls.
LAS the result of these conditions the
banks have ceased to loan money e1-
cept in urgent cases. My bank in Juar-
ez is not governed by the banks of the
republic and 1 have loaned many thous-
ands of dollars to people in the inter
1or who could not get the money at
the other banks. Our bank at Chi
huahua has probably more than a mil
lion dollars in American and other
foreign money and holds good securi-
ties for every dollar of silver that has
been shipped out of the country. but
it cannot use them. 1t is a peculiar
state of affairs, but the government has
now come to the rescue and is letting
out the silver reserve to relieve the
depression.