Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-03-05
The Gold Standard Will Not Be
Adopted at Present.
IMPROVEMENT RI TRADE PROSPECTS
The Falling Off in the Exports Not
Considered Permanent.
GOV ERN ENT Icy
special Correspondence of The Evening Star

| Special Correspondence or The Evening Star.
CITY OF MENICO, February %. 1901.
'"The Mexican government does not con-
template taking any steps toward the adop-
ton of the gold standard for this country,
nor has it such a proposition even under
! consideration" said Mr. Limanteur, the
Mexican minister OF finance, to your CORE
spondent
DO you not look forward to the adop-
ton of the gold standard at some future
| timer" Mr. Limanteur was asked.
at is of course, the ideal. the perfect
| financial condition. he replied, but until
! the exports of Mexican produce amount to
more that the imports and the moneys
which are now senttout of this country as
fixed charges on the. national debt, railroad
| securities and other papers and obligations
of like character. 1t would be unwise, not
to say impossible, to change the financial
system of the country from what it Is now
| The silver basis has served to encourage
the investment of foreign capital, has fur
nished the people with money of their own
production, and in many other ways has
proved the best system of coinage for this
| country. We never see any gold, although
we produce considerable, some of the pro-
duct even being minted. 1t leaves the
| country Immediately, and so long as our
resources are subject to the strain of a for
eign balance against US it would be i'm
possible for us to hold any gold In local
! circulation. If Mexico was receiving more
than she was paying out it would put a
| different face upon affairs"
| do you believe the ideal condition will
be reached within reasonable time?" Mr.
| Limanteur was asked.
Change In the Near Future.
Il do" the minister replied II think
that within ten years Mexico will have re-
versed the present economical condition.
and We will then be justified in considering
the adoption of the gold standard, but at
the present time, as 1 said, the matter is
not even under consideration, serious or
| otherwise
When asked as to the truth of the re-
port which has been in circulation to the
erect that a financial crisis now existed In
| Mexico. Mr.. Limanteur said:
ut is true that there is a certain denras
sion In business. due principally to the
scarcity of cash and undue activity dis
played in recent years in the organization
OF industrial corporations The scarcity of
cash is due to two causes, the falling Off IN
the expectation of articles other than gold
and silver, falling off which is purely for
tutous and temporary for the most part
but which has naturally compelled us to
settle In coin the debit of our trade balance.
and the demand for our dollars to meet tbe
needs of the far east"
Not Financial Crisis.
Would you consider the present situa-
ton as bling in the nature of a financial
crisis?' 49,
SO far is the present depression from
rneriting the name Of a crisis that I'D to
the present no firm Of Importance, least of
all any establishment, Of credit In the re-
public, has suspended payments
Il firmly believe that the prudent meas
ures taken by the government in concert
with the principal banks. and the highly
conservative spirit which characterizes
men OF affairs in this country will suffice
10 surmount these temporary difficulties
within three or four months, and that If
this Is not the case money can easily he
secured from the United States or Europe
. which Will Immediately restore to our mar
, ket the activity which in part it has lost
IT would not be true to say that the
present economical conditions of this re-
public are as fattering as those which
) prevailed last year. But, on the other
, hand. the difficulties we are now meeting
with must not be exaggerated to do JUS
. tice to the situation. In the years 1898 and
1899 there was an annual excess of exports
, over imports, amounting to over $40, 900, 900,
, which went abroad in the payment of pub
, lie debt charges, interest on bonds issued
by railroad and other companies and profits
; on the shares of various corporations In
1900 the importationS of merchandise in
; creased $4,000 900, whereas the exporta-
; lions only increased S100O0,OOO. Instead of
there being an increase of SAL 100000 in
exports over imports The excess did not
even amount to s3O,OO0,O00, and the coun-
. try was forced to find some other way in
. which to meet its foreign obligations.
; To Meet Trade Balances.
. 'At a time when Mexico stood most in
. need of articles for expectation to pay the
balances Of trade there came a scarcity of
. exportable articles other than the precious
. metals. and it was necessary to draw upon
the latter in order to meet the emergency.
!. AS gold and silver cannot be produced in
: larger quantities at any given moment,
7 nor are there large supplies of those met
ais on hand in or in bars, the country
had to pay In coin.
The great expectation of coin during the
!. past few months, therefore, Is due chiefly
to the ratio between the volume OF lmpor-
tations and exportations and the inf1uen &c
Of certain operations In the line OF credit
n | or investments on the aggregate liabilities
2 !, of the republic toward foreign nations.
q 1.-THE expectation of hard Mexican dollars
during the months of July to October,
1900. was over s1OOOO000 In the same
9 months the year previous the expectations
were less than $2OO0.000. An increase OF
!, nearly nine millions In the expectations OF
:. dollars and shrinkage Of more than one
. half in the coinage are causes sufficiently
! powerful in themselves to explain the pres
a ent scarcity Of cash"
;, Amount of Silver Circulation.
What is the total amount Of money In
) circulation in Mexico, and where Is II
: placed?' the minister was asked
q 1.-THE total circulation of silver money
|
d $9O,OO0.OOO. Fifty-three million dollars OF
Q this silver is now In the bank vaults to Sc,
!. cure outstanding paper currency, amount
ing to about s65,OOOOOO. 1t may be said
therefore. that the amount of money in
circulation In the republic Of Mexico Is ap-
proximately 100000, 600. 1t Is not strange
p therefore, that when che peoples supply OF
. cash is decreased within four months by
$ about ~ per cent business should re.
t ceive considerable shock. OF the s11 co.,
: 900 that have gone abroad in four months
six and one-half millions were from the
:. bank holdings and the balance from private
d stores" a5W ~
e What caused this decrease In exporta-
!, tons and does II, show any signs Of being
t permanent in character?
"The principal decrease was In hemp
copper, coffee, hard woods, tobacco and cat
tie. 1t is not to he supposed that in all
: these lines of expectation the causes check,
l. ing their Development will remain perma-
r nent We had AMI unsatisfactory season
e last year. whichioenrtailed the crops. and
: the large numberlfef articles In which a
T. decrease of expectation is noted is sufficient