New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-03-29
MExIC0 ON A GOLD BASIS.

Mexico has at last revolutonized her none
tary system and rid herself of the incubus of
the silver standard. A decree just issued by
President Diaz carries into effect the reforms
authorized last December by the Mexican Con-
gress. The free coinage of silver is to cease on
April 16. After May / the gold peso, or dollar.
will become the sole unit of value. The silver
pesos will he retained in circulation, exchange
able with the new gold ones at the ratio of
to 1, and to maintain the parity between the
two dollars reserve exchange fund of not less
than S10O00.000 will be established
In its chief features. therefore, the new sys
tenn practically duplicates that adopted by our
Congress for the Philippines, where Mexican
coins had long served as local currency. Mex
leo and China Joined with the United States in
1908 in seeking international cooperation in
movement to restore a fixed relationship be-
tween the moneys of the gold standard and the
silver using countries. 1t was proposed to give
greater flxity to currency values in the Orient
by establishing a definite ratio between gold
and silver in the Philippines and in China, and
to do away with the embarra ssments of fluct-
uating standard in trade between Mexico and
the rest of the world. In accordance with the
findings of the commissions representing the
three countries, silver has now been demOne-
tized and silver values have been fixed in terms
of gold in the Philippines and Mexico. In
|
| ties will be encountered But it is hoped event
| ually to bring the coinage of that empire into a
| fixed relationship with that of nations possess
| ing political and commercial interests in the
| Far East.
| Mexicos acceptance Of the gold standard has
been long retarded by local conditions. AS one
| of the great silver mining and silver coming
nations, she has naturally been anxious to keep
open the market for one of her most important
products. Ten or fifteen years ago it would have
| cost her an enormous effort to reform her
! monetary system. She lacked the resources to
weather the storm which the decentralization of
| silver would have provoked. To-day, however,
after an exceptional period of prosperity and
much careful preparation, she can take her
| place among the gold standard nations with
out serious strain. In a way, perhaps. the de-
| probation of her silver dollar has had a part
in stimulating internal development For with
gold at an increasing premium rising values for
1 foreign goods have encouraged the establish
ment Of many local industries. As whole.
/ however Mexican trade has been handicapped
I by constant and often violent fluctuations in
silver values and the uncertainties of business
conducted under hopelessly deprecated money
| standard
| To keep an even footing In the worlds mar
kets and to attract investments from abroad
! especially from the United States-a greater
monetary stability was found TO be necessary
and under the guidance of her capable and far
seeing Minister of Finance, Senior Limantour.
Mexico began three years ago to plan reor-
| ganized financial system. In January, 1903
customs duties were ordered assessed and col
| ected on a gold basis. Later loan abroad
/ TO provide gold reserve was arranged for. and
commission was appointed to act with repre-