New-York tribune., 1903-04-01
MEXIC0'S CURRENCY.
WORKTNG FOR GOLD BASIS.
Charles Il. Conapt Predicts Success
of the Reform Increment.


rency of Mexico was predicted yesterday by
Charles A Conant treasurer Of the Morton
Trust Company. who has just returned from
the Mexican capital. Mr. Conant was invited
by the Mexican Government. along with Ed
ward Brush. of the American Smelling ana
Refining Company. and Professor J. w Jenks'
of Cornell University. 10 visit Mexico and con-
fer with the Minister Of Finance in regard 10
the provision made by Congress for the CO.
operation of the United States with Mexico and
China in regard TO giving stability and uni
forraity TO the currency systems of the silver
using countries. Mr.. Conant said yesterday, in
response to a question whether Mexico would
soon adopt new monetary system:
Il think that the Mexican Government will
establish a fixed exchange standard for Mexico,
which will continue the large use of silver
coins. but viii provide for keeping them at
par with gold by government control of the
quantity and by a gold exchange fund in the
leading financial centres The Minister Of
Finance and other leading Mexican officials are
l1eenly alive to the disadvantages which the
country has suffered from a continuously de-
CIining rate Of exchange which has compelled
her 20 give up a constantly increasing proper
tion Of her products in exchange for the
products Of gold countries The subject is very
well understood by the financial leaders like
Mr.. Limantour. the Minister o. Finance; Mr.
Nacedo. chairman Of the special committee
which Is investigating the subject; Mr. Casasus
the Speaker of the House and the trusted
friend of President Diaz: and E c Creel
the prominent banker who came to Washing
ton as ore OF the delegates of the Mexican
Government on this subject.
DO vou believe that Mexico viii succeed fin
carrying out this project?'' was asked.
7 think there viii be no difficulty whatever
with the prudent r-ana cement which I think
IS assured under the administration Of Presi-
dent Diaz and MI Limantour There is no
doubt that # IN exchange standard is estab-
lishAd. il viii he safeguarded X provisions sim
ilsr n those IN our own statutes for main
tanning the parity Of our paper and silver
r1oney Mexico already conducts her fiscal
affairs through the national bank. and does not
disturb the money market by locking up funds
n the government treasury. Her credit is good
and Is iikelv ~ be greatly improved with the
definite adoption Of an exchange standard.
Is there any danger Of revolutionary out
breaks If President Diaz should retire from pub
JIG life2' asked vour representative
Il think not" replied Mr. Conant. >"The Mexi-
CO Of to-day is = very different country from the
Mexico Of twenty years ago The leading men
OF the country are largely interested in impor-
tant industrial and financial enterprises. and
realize keenly that they cannot afford 10 coun-
strong in the country, and the wide diffusion OF
railways which are being constantly extended.
znskes IL impossible TO raise the flag Of revoIu-
zion In any province without prompt action from
fhe capital Mexico has become an industrial
country Of the first Importance. and there is per
laps less opportunity for disturbance 70 indus
trial conditions in some respects than in the
Omitted States. The laboring people are not or
Eanized into unions TO any extent, and strikes
eano violence against employers are almost IN
Atmown. Even If friction should occur over the
tgoyeTnnents no government hereafter estap- Si
E1lshed In Mexico is likely 70 90 anything 70 I'M
spair permanently the public credit. No govern
snent could live long which did not scrupulously
fulfil al the obligations assumed regarding tle
public debt and give the guarantees OF security
for investment and development which nave
worked q revolution in economic conditions IN
der President Diaz."
You consider the opportunities good. then it
was asked. for additional American invest
YES was the reply. Mexico is in some re
spects a virgin soil for development by Amer
can capital. There is already about SIo9ooo-
600 in American capital invested in Mexico. and
This is probably only a fraction of the amount
which VIII be invested When she mas aooPled q
Sta bic monetary system several groups oI
American capitalists are ready to make such
Investments as soon as the monetary questions
are settled A large part of the American IN
vest}nent at the present time is in railways
The railways have suffered perhaps more than
any other single interest hy the fail Of exchange
because thev have continued TO collect their
freight rates in silver. while they have paid
many Of their ernploves and have renitted their
have been debarred thus far by the government
from raising their rates. hut their condition has
become such that some increase in rates viii
probably he permitted within the near future in
anticipation Of the adoption Of fixed rate of ex-
change. The existing railways would he paying
handsome dividends If silver had remained at
par. They Will probably pay well in the future
81 2 definite standard is adopted
What is the feeling in Mexico toward Amer
icans@' asked
There appears 10 be none of that fear which
exists in some European capitals that American
capital and enterprise viii dispace those Of the
country. 1t is frankly recognized everywhere
T1lat Mexico needs capital from abroad. as we'll
as what she has at home. for the development
Of her great natural resOurc - 1t is to this
country that enlightened Mexicans naturally
look for this cooperation They have the hear
~ support Of the government in welcoming
American capital and enterprise to Mexico, and
there is an American colony Of several thousand
At the capital. The City of Mexico has improved
greatly within foDr or five years, largely as the
~esnlf Of American investments there. The
streets are we'll paved and lighted. electric tram
ways run TO the principal suburbs. and the sys-
TEN OF sewerage and water supply has been
brought up TO modern standards President
Diaz has been the guiding spirit in ali this, and
nppears 70 appreciate fully the admiration which
Is felt for him in this country. recent gov
eminent decree makes the teaching Of English
con7r,ulsory in the public schools IL is already
spoken by nearly all the leading statesmen Of
Mexico At a dinner given b. Minister Liman-
ing before left the city, there We're some
twenty guests present. citizens Of Mexico. every
one of whom spoke English more or less and
many Of them with the greatest huency- Steps
are being taken constantly to strengthen the
T.onds Of commercial unity between Mexico and
the United States. and lay deep the foundations
of industrial development in the country"