Evening star. [volume] (Washington, D.C.) 1854-1972, 1901-03-05

iations we have made conditions easier for
those desiring to mint their silver, but
these steps have been merely notifications
OF governmental regulations. and are with
out the dignity of congressional action.
Before congress adjourned at ITS last ses-
sion it empowered the minister OF finance
to take these steps in the effort to increase
the amount of coined silver in the repub-
lie. have seen considerable gossip In re-
gard to the paper money of Mexico much
of which is harmful to the credit OF this
country and Is to be deplored.
THE government is represented at every
bank of issue by agent. whose sigma
ture is necessary before a note passes into
circulation. There are two banks of issue
In the federal district and one In each state.
rhe paper money of these banks is guaran-
teed by being held prior lien on the as
sets of the bank, by holdings of cash in
the proportion Of one unit in cash for two
units in notes and deposits payable on de-
mand, and again by fixing limit for the
entire issue of three times the amount Of
the capital of the bank subscribed and
paid up. There are other minor guarantees
iii the shape of restrictions upon the man.
ner of doing business and making loans.
The paper money of the authorized banks
of issue in Mexico passes al par. None
of the banks have awaited themselves of
the full rights of issue which they possess,
and at this time there is one dollar in sill
Yer for every one and one-fifth dollar in
paper in circulation, the silver being on de-
pCSit in the vaults of the banks of issue.
Condition of the Industries.
When asked as to the condition of the
large industrial concerns of Mexico Mr.. Lii
manteur said:
''The situation in which in general mer-
camille and industrial concerns stand in re-
lation to the banks and banking firms
must be considered in estimating the pres
ent status. During the past lew years
haS tremendous growth IN
Mexican industries. There were large
number of joint stock companies organized,
a form of enterprise little known in Mex
leo in previous years. It may be SAID,
therefore that speculation in stock securi-
ties in this country IS matter of the past
FIVE years only. The facility with winch
credit was secured at the banks by giving
shares of joint stock companies as coliat-
eral led many firms and capitalists to en-
ter upon new enterprises without waiting
with due caution to learn the results OF
earlier investments. AS soon as scarcity
of cash was felt throughout the country a
large volume of stock was thrown upon
the market, producing general depression
in securities. Fortunately for the country
large majority of the new enterprises
rested on accurate calculations Which pre-
cluded any danger that might arise to the
holders Of their securities. To add to the
difficulties of the situation there has been
failure of the corn and barley crops IN
a large part Of tho country, causing a con-
siderable advance in the price OF those
cereals and there has been an overpro-
duction in the cotton industry, which, cou-
pied with the excessive price OF the raw
material, has compelled a NUMBER OF lac
tories to close their doors. -,
IT am confident all our troubles Will
disappear in proportion as equilibrium OF
trade is restored as the expectation OF
| hard dollars decreases, as the market Ior
| industrial securities improves and as the
influx of foreign capital resumes Its wonted
volume" j. ID. WHELfLf1h.