El Paso daily herald. (El Paso, Tex.) 1881-1901, 1901-02-09
IS Crisis
Near at Hand?

been looking for a change that will up
set the country and are keeping no
money in Mexican banks.
The banks are keeping all the silver
they can get hold of. None of the
Mexican banks are now lending money
and this within itself has significant
meaning.
A part of the $3.50, 200, 900 gold bonds
outstanding against Mexico are held in
New York and the j. p. Morgan syn
oicate has the greater part of them.
1t is said by those in position to know
that the Morgan syndicate is now de-
manding the payment of some of these
bonds and Mexico cannot pay them.
Even the interest on some of the bonds
now due has not been paid and the
syndicate has demanded a change that
will enable it to get it's money. Mexico
has been forced to surrender and the
adoption of the gold standard if not a
political revolution is certain.
"All Mexico will be controlled by the
New York banks within year." said
a prominent man from the east this
morning, ''and Enrique Creel will be
the fiscal agent of American capital
in the republic. He is now closing
this deal in New York and when he re-
turns to Mexico he will recommend
that Mexico adopt the gold standard.
He probably does not favor the change
for his interests will lose but he sees
that it is inevitable and had better be
done now than later. President Diaz
is an ambitious man and a good man
but he cannot relieve the panic that
threatens his country and the strain
will likely end his life. He is now old
ana growing more feeble every day,
and when he sees that he cannot long
er run his country on the silver basis
and has to make such a sudden change
the strain will be too great for him."
The opinion is endorsed by many 9TH
ers and is supported by circumstances.
Whatever the financial result will be
it is safe to say that radical change
is coming over Mexico within another
year and when it comes to financial
system will be changed even if the
whole system of government is not
revolutionized.
1t should not be said however, that
the people of Mexico object seriously
to the adoption of the gold standard.
On the contrary it is believed that the
people of that country will welcome
such a change. Minister Romero, be-
fore ba laft XVaShip otOp for tho fret
time, wrote a volume on Mexico, her
finances and conditions. In this book,
while favoring the continuance of the
silver standard, he repeatedly stated
that free silver had not made produc
tion cheaper in Mexico; that it had
made expenses higher. because Mexico
bought so heavily in foreign countries,
and was unfayorable to wage workers.
He wrote letter to the Plankington
bank at Milwaukee. stating that Mex
leo could not pay the interest on her
gold bonds unless new bonds bearing
less interest were issued instead of the
high interest bonds now held in the
east. However Mr.. Romero thought
that it would be almost impossible for
Mexico to adopt the gold standard at
present and went on to say that it
would be more difficult for Mexico to
adopt the gold standard now than il
would for the United States to adopt
the silver standard. The private Sc
curities of the country besides the mil
lions of dollars in paper money are
backed only by confidence and the
change would wreck many wealthy
men.
All eyes are turned to Mexico and
the next few years will be history
makers in that republic