El Paso daily herald. (El Paso, Tex.) 1881-1901, 1901-02-09

The financial condition of Mexico and
it's probable results are now attracting
the attention of finaciers in every part
of the country. and some change. who'll
ly unexpected by the general public,
is likely to result.
1t is the opinion that the meeting OF
New York bankers at the Waldorf-As-
toria Thursday night when Enrique
Creel of Chihuahua was bapqueted,
had no more to it than passing signifi-
canoe Creel is the acknowledged head
of finances in Mexico as well as a man
of great foresight. The New York
bankers acknowledge him as such and
the opinion prevails that Creel is in
New York on business of vital impor-
tance.
While it may not be so bad as that.
it is believed by some that his business
there involves a financial eruption in
Mexico; involves the existence of the
silver standard in that republic if not
the very life of the country's head and
the whole system of government.
1t has been said that Mr.. Creel is in
New York to study American banking
and money system with the view of
later putting Mexico on the gold stan
ward. This is denied by some who
have given the matter thought and are
in position to be acquainted with the
general conditions. They assert that
Mr. Creel is now in New York to learn
why the American banking syndicates
are trying to force Mxico to the gold
standard and what the outcome is go
ing to be.
Mr.. Creel sees that Mexico cannot
upheld the silver standard and -
become a creditor nation, which has
been the lifelong desire of President
Diaz Diaz and Limantour also see this
and are on the verge OF giving up the
struggle and adopting the gold stan
dard with the United States. From the
beginning Mexico has been a debtor ma
ton. This debt has been increasing
from time to time and now that coun-
try owes foreigners in gold securities
more than $3.50 .OOO. 900, and for the in
ternal debt some $1OO.000.0O0 more.
The income of the government is only
about $75,O00,000 per year with ex-
penses a little in excess of that amount.
Under this state Mexico is getting
deeper in debt every year and the fl
nanciers of the country are beginning
to wonder what will be the final result.
The banks of Mexico have an aver
age of five to ten times their capital
stock in outstanding paper money.
which when the country goes to the
gold standard. will be of doubtful
worth Not a bank in the republic can
cash its paper and as the government
does not back it as it does in the Uni
ted States, the result will be volcanic
when it comes. Creel, it is said. sees
this and is in New York to ward off the
coming blow. He has few equals in
any country as financier and he will be
one of the few who will suffer little
with the change.
Already state and city securities in
payable in gold. are being turned down
in New York. The city of Guadala-
jara recently issued S2.000.000 gold
bonds and offered them for sale on the
New York market. Not one was sold.
This is explained in the fact that the
financial world is looking for crash
in Mexico and do not want Mexican Sc
curities at any price.
Local banks in Ell Paso have refused
to discuss the question OF Mexican IL
because of the friendly relations
with Mexican banks. but acknowledge
that Mexican securities find a poor
market in this country. They have all