New-York tribune., 1902-12-09
MEXICO AND GOLD BASIS
pREP4RING FOR CH4NGE.
No Immediate fiction Posabe-.Steps
to 4Ne51ate Present 4nnoWng
COn6ifioas.

The recent severe fall in the price of silver.
resulting in great Generalization TO the import
,,d export trade of Mexico, has given rise to
many conflicting rumors as to the immediate
sdoptior of the gold standard by that republic.
American interests in Mexico have increased so
raridly of late years and the volume of Ameri-
can investments there and of American trade
with that country has become so great, that the
subiect has attracted scarcely less interest in
financial and commercial circles here than there.
Owing. however. TO the indefinite and conflicting
nature of the reports as to exactly what action
Mexico has in contemplation for purposes of re-
liz, il has been impossible arrive at any in
1-lljsen; understanding of the situation
Below viii be found letter flom Enrique c.
creel the leading financier and banker Of Mex
leo setting forth clearly just what is contem-
rlafed for immediate relief. and what the atti
rrGe OF Mexico is toward the gold standard
> What Nj. Creel says may 0e accepted as abso-
lat.ly authoritative. for not only has he given
careful study The subject himself. but he en-
;evs the entire confidence of President Diaz and
sehor Limantour. the Secretary of Finances.
The letter was written TO friend in this city,
who has lust returned from Mexico. and en-
bc6ies the substance of conversation held with
s,r Creel. The letter follows:
Chihuahua Mexico November 2s. 1902.
Nix Dear Sir: [ have read IN the papers OF the
The Mexican Government regarding the currency
has been misunderstood by the newspapers. which
ggress one bv the Secretary of Finances recomend
ing the gold standard for Mexico at the rdte OF
go Mexican dollars for S1e9 gold
SO far the currency of the country IS con
ned no b ,f aaf natter Nth be- for
time under careful eopsideratlon by our SEC. SEC
Conclusion to recommend the gold standard will
take his time so as to introduce the neW system en-
financial arTangegeRts have been ade mao e6re Il IS nGF
s7Tte On 1Gss move is taken by the government.
The bill which submitted to Congress by the
The import duties which amount to SIS 600 per
annun should be paid on theoreucai go1o ;,I nSSlS
regulating the exchange at l2o per cent premium
50 that YOU may understand this system ! vii vii
mention illustration that If merchant mas
pay coording % 70 the he Iif 1aI 50 ~ m gos Mefle bs
AT 20 per cent premium or the merchant Will nave
= pay Sl5 N 600 pu' rs Is evae1t can be made in
silver the current rate of exchange II the rate
merchant win have to pay $40 in Mexican silver;
instead Of 500 In gela or IN other hs for
by the tariff. $50 which is the difference between
gold and 10 per cent which is the actual exchange
cal gold basis may be step toward the gold stand
ard in this country but for the present 1t does nor
finue on the silver basis: but as you will notice
IN the pamphlet which have published ny oPln5 n
a great extent and that it is only a question Of
and by the action of its wise government will &C
.ept in nv opinion. the gold standard as soon as
it can be done very siiiesSfRsffo ENRfoUE 6 cRBEL,
Tho pamphlet TO which Mr. Creel refers IN MS
1fzq is an elaborate discussion Of conditions in
Mexico as they bear on the possibility OF the
adoption Of the gold standard for that country
II is now being translated from the Spanish and
within ten DAYS or two weeks will he available
~ study by readers of English It. like the
foregoing letter, may be accepted as semi
nf he views President DlaZ,
Secretary Iinlantour and other leaders of MeXl-
can thought Mr.. Cree1 believes in the de-
STABILITY and necessity Of the eventual aooPI
Of the gold standard but he urges the greatest
care and thoroughness in the preliminary WORK
1cycrvfhing in Mexico is at present adjusted 10
The silver standard, which has been IN opera
7ion for centuries Undue haste in eHectlns
change of standard, would, he thinks, result IN
worse evils than the present f1uctuating value
OF silver. with its consequent effect on exchange
In a letter written several months ago TO an
American delegate to the recent Pan-Alnerican
Congress Mr. Cree1 expressed his ideas on the
subject at some length. He canNassed the SIT
uation as it appeared from the point or view Oh
the various business interests, agriculture min
ing railroads. banking, commerce, manufactur-
ing real estate, wages, foreign capital; govern
ment revenues and balance of trade, and came
10 the following conclusion:
In my opinion the eyoutlon IN in lsnog .! e u more %
and more The relations with gold countries the
influence OF foreign capital, the action or TdiI-
roads the credit of the country. the new 1eVeo2g-
mentS and the viii OF the people viii demand eoiucc
ana finally viii have gold as the stanIa on
money in Mexico. ] must say, however ihat the
country yet ready II would be a very greaI
mistake 10 make an experiment now because
fear that failure would follow, and 1t would Geay
for many years the betterment as REGARDS me
currency of the country. which otherwise will come
n natural way, perhaps after twelve or hiteeT en-
Years more or less If have the good luck 70
increase our ratio of prosperity and 10 have the
good sound government which Is helping MeAlco
in s1ch an important and beneficial way, IT may
como sooner.
The extremely rapid change in condltiohs III
Mexico owing to the sudden and heavy fall IN
sil er and the consequent violent tions III
exchange since last May, as wen as the III
creased inz,esfInents from this side of the bor-
der NAV reasonably be expected to hasien Mtne M
reriod Of transition but not SO rapidly that Iie
country cannot be educated or business cohui-
tons adjusted 10 the new situation