The San Francisco call., 1903-01-03
MEXICAN CURRENCY.
M EXICO has suffered much in times past by the
I'M fluctuations in the value of silver, on which
4 II her c1trrencn &c hne hut than

M EXICO has suffered much in times past by the
I'M fluctuations in the value of silver, on which
her currency is based. but never more than
present. Consequently her and hnanciers
are now devising means of providing stable cur
rency All persons having any financial relations with
the country will of course be less affected
by such changes as may be made, and the issue is
therefore interesting not only to Mexico herself but
to the world at large.
Recently a correspondent of the Philadelphia
Record interviewed President Diaz and Senor Ii
mantour the Minister of Finance, the subject of
the purposed changes but did succeed in obtain
ing from them any definite statement concerning the
nature of the that would be adopted. Diaz
contented himself with saying while do not know
what the exact outcome OF the proposed change will
be, will say that nothing shall be done that will
discriminate against foreign capital in Mexico
Senior Limantopr declined to discuss the admins
tration plan of currency reform but after pointing out
the evils the Mexicans suffer from their uctuatng
currency, he went to say that the country has no
precedent to guide it in seeking remedy On this
point he said: Japanss experience is not parallel
case, as many people enormously suppose. The king
dom OF the Mkado is not a siver-producing country
like Mexico. Fully 40 per cent of our exports is
silver. We produce sone-thrd Of the worlds supply
/ Japan got enough gold as indemnity from China to
gold coin in circulation bearing the stamp OF the
Mexican republc. All the gold our people have is
in the form of souvenirs. We have way to get ii
except to buy it, and if we secured supply it would
not long remain in the country, because the balance
OF trade is always against u.s..
In response to further questioning the Finance Min
lister reported to have said that if the value of the
Mexican dollar could be permanently established al
half that of the American dollar he would be satisfied
He did undertake to say how that value could be
established. Interviews with leading merchants and
bankers OF the City OF Mexico brought the universe
answer that it could be done only by internatona
| agreement
1t was admitted, however, that international agree
ment is not at all likely For good many years tn,
| United States and France seeking an inter
national agreement on the same ISSUE but failed A.
matter Of fact international agreement even if OBJ
tained, could permanently fix the relative values
of silver and gold Those values uctuate every day
according to the supply and demand of each meta
in the worlds markets. The United States has founc
relief from the evils of fuctuating currency by es
tabshing her monetary system the gold basis ant
in the end Mexico will have to follow the example
| There is other way.
1t is worth noting that in the course of the inter
view with President Daz the fact was brought ou
incidentally that upward of $5ooooo,ooo of Unite
States capital is invested in Mexico and new capita
is going in rapidly. The President said: 81 hav
this day signed forty-one mining permits for Ameri
cans sign permits every day for all kinds OF enter
prises backed by American money" 1t will be see
then that have large interests in Mexican inancia
problems and will be greatly benefited when she find
stability on the gold standard