Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-29
WILL MARK AN EPOCH
Mexico Will Adopt the Gold
Standard May l.
SILVER COINAGE STOPS
MADE By THE
DIAZ GOVERNMENT.
Expected That Large Sums Of Money
Will Be Attracted to the Country
for Investment.
BY VIM. E. CURTIS.

Written for The Star and the Chicago Record
Herald.
The 1st of May will be an epoch In Mexi-
can history, for on that day the govern
ment adopts a gold standard Of money. and
the Mexican dollar hereafter has a fixed
value of 1875 cents, based upon the guar
antee of the government to redeem In gold
upon demand all such coins as were In cir
culation on April 10 last within the limits
Of the republic From and after May the
Importation of Mexican dollars now in cir
culation In other countries is prohibited.
and the coinage of the present silver peso
will be suspended except for export.
For three centuries Mexican pesos have
been the currency of China, and to con-
siderable extent in the Philippines and
other parts of the East Indies. At times
they have been the only money in circula-
ton there, and hundreds of millions of dol
lars are still circulating throughout the
east. Hereafter the usual quantity will no
doubt be coined at the mint and sent to
China every year until the latter country
shall adopt a coinage Of it's own. But under
the new monetary law of Mexico the Presi-
importation Of silver dollars, but to de-
monetize as many as he considers desirable
to withdraw from circulation, to change the
design Of coins hereafter made for local cir
culation and to do whatever else is neces-
sary to maintain the parity which has been
fixed between silver and gold.
The standard Of value hereafter in Mexico
Is gold peso OF seventy-f1ve centigrams.
equivalent to 1875 cents In American money,
and the subsidiary coins will be a peso
containing A.4S91 grams Of pure silver
and 2.6342 grammes OF copper. and smaller
silver coins of One-half, one-fourth and one
eighth of that amount Of metal. The silver
coins will be legal tender for not more than
twenty dollars in one and the same pay
agencies where silver can be exchanged for
gold under the regulations prescribed by
the executive. In other words, Mexico
adopts a gold standard. and makes the
change from silver practically upon the
same plan which proved so successful in
Japan several years ago.
Japanese Led.
The Japanese led of in this policy. We
followed in the Philippines. and then the
Straits Settlements. the Malay Federation
and Siam adopted similar measures India
did practically the same thing, with certain
variations That government did not go on
a gold basis exactly. but the silver rupee
was given a Hxed value In trade, regard
less Of the fluctuations of bullion. The sue
cess of that policy in India encouraged
Mexico to go ahead without waiting to ac-
cumulate large gold reserve. The execu-
tive department, however, has been endow-
ed with unlimited power and Is authorized
10 take Whatever steps are necessary to
obtain gold for redemption purposes. The
president can issue bonds or borrow gold,
Or do anything that seems to be required.
This leaves China. Korea. Persia and sew
eral of the Latin-American countries as the
only nations which are now on a silver
basis commission was sent to China two
years ago to endeavor to secure the adop-
ton of gold standard there. but the idea
was not favorably received.
Nearly all of the Latin-American coun-
tries have nominally adopted a gold stan
dard. but most of them are using an ire
deemable paper currency. Peru. Ecuador
and Uruguay are the only exceptions. They
are standing firmly a gold basis, with
no outstanding government notes and only
such bank notes as are convertible on de-
mand.
Conditions In South America.
In answer to an inquiry George e. Rob-
erts. director OF the mint said:
Our last report from Argentine ID for
tho LIST Of January. 1904. when the amount
OF government notes outstanding was $874.-
N8.20- The government has undertaken to
dx thoir value at ~ cents IN sold to the