The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-03-13
CHANGE WROUGHT SINCE 1905
stability Given to silver Pieces by
Making Them of standard Weight.
Gold Money Placed in Circulation.
Domestic Trade and Foreign Tx
change Are BENEFITED.


The commission was appointed in 1885,
and its labors have been continuous since
that time. AS a result of its efforts the
finances OF the country have been
strengthened and Mexico has been placed
on a trading basis with the rest of the
world in which Its money passes cur
rent. The change has been wrought
gradually. but the old silver coinage Of
Mexico has been replaced by new silver.
gold, and nickle coins, not subject to
fiuctuation in value, giving stability to
financial transactions in domestic trade.
as well as in operations with foreign
countries.
Was Based on silver.
The monetary system Of Mexico prior
TO 1906 was based upon a silver standard.
During the period of unlimited circula-
ton as a legal tender of the fractional
coin and OF the free coinage Of silver
there were frequent and serious disturb
ances in trade, which resulted in heavy
losses TO the markets Of the republic.
Early In the eos the value of silver
began to drop rapidly, and later on fiuc-
tuated in value 10 such an extent that
it was impossible to foretell its value
from one day to another. The question
assumed such a grave aspect that the
government took the matter in hand and
instituted a serious study Of the situa-
ton, which resulted In a change from
silver to a gold standard for the none
tary system of the country, by special
laws. early In 1865.
At the same time a commission was
appointed consisting of well-known
financiers and members of the legal pro-
fession. with the secretary of the treas
ury as chairman. The execution OF the
new monetary laws was lntrusted TO
this commission. 10 which a fund OF
100000 had been assigned Its labors
began on May /. 1906, and 4 memorial
containing many interesting features, in
addition 10 a description OF its opera
tons from the date mentioned to June
Sc, 1909, has just been issued.
LabOrs Of Monetary Commission.
Although the new laws by their opera
tons did not demonetize silver coins,
they did provide for change in the type.
size, and component parts of the frac-
tional coins 10 be minted thereafter. It
was discovered that at ports and points
on the borders a congestion Of fractional
coins had occurred, and that the banks,
TO avoid the cost Of transporting such
coin 10 other points, had stored them in
their vaults as part Of the reserve /
funds they are required by law TO have
on hand.
One Of the first labors Of the commits |
sion was to relieve this unsound con-
dition. The commission, being prohibited |
by law from purchasing bar silver for
coinage purposes, used a part OF the |
funds provided by the government in the /
shape of silver pesos (peso is 1913 centsl |
for the coming of new fractional cur
rency. which, by an arrangement with |
the banks and government offices. was
put into circulation. with a preference IN
favor of exchanging It for the old coins. |
During the period mentioned S6.5ls. $50 1
or silver pesos and S11, 7s2, 81 or pesos in
fractional silver coins were thus re-
coined. No silver peso pieces have been
recoined since July I, 1901. During this /
period efforts were made TO Withdraw /
from circulation the old 1-centavo copper /
pieces. This coin was about the size OF
an American quarter dollar, and the size /
was reduced to that OF an American /
cent Altogether 6, 266, S07 pieces Of the !
old coin were retired from circulation |
and 7. 4s4.Os5 were melted. There are still |
to be melted 25.72.772 1-centavo pieces.
This operation entailed a loss to the COM
mission amounting TO SS21S (pesos), or
about 4S per cent OF the total monetary /
value of 1-centayo pieces withdrawn /
from circulation.
Coinage of Nickel Pieces.
Another notable feature Of the opera |
tons of the commission, the coming OF |
s-centavo nickel pieces. is directly |
ascribed TO the working OF the new none |
tary laws. These coins were put into
circulation without the least inconveni-
ence or any objection by the public. At
the present time the coin is minted only
In amounts necessary TO supply the de-
mand, and IS exchangeable for coins of
other denominations. A total OF $685.
(pesos) IN 5-centavo nickel pieces have
been placed In circulation. While these
coins were a legal tender In unlimited /
quantities in 1883. under the present law
l peso in nickel coins is the limit that is
for acceptance In a single pay
ment.
Silver reached its lowest value in 1902,
and then commenced to rise slowly, I'M
til in October. 1905. it stood at friction
over IS pence per ounce, which was the
maximum value in London. This was
considered a favorable opportunity by the
commission to convert Mexican silver pc
SOS into gold by exporting in exchange
for gold IN bars or foreign gold coins
not only it's own funds, but also, by
special arrangements with the banks of
the country, the funds of the latter In
the same coin.
This prevented expectation by others,
which might have caused a reaction or
possibly a perturbation OF the market.
From November, 1906, TO September. 1907,
50. 727, 500 pesos were thus exported; but,
the precautions adopted
by the commission, other parties COM
menced TO ship silver coins to foreign
ports 6lso-in all, to the amount Of about
100000 pesos. Thereupon the government
enacted q law by which export
ers Of Mexican coins were compelled to
pay dl SApOIl CulS VI ~ per cent Ut else
deposit with the commission within thirty
days gold bars or foreign gold coins
amounting in value to the equivalent OF
the silver pesos exported. and this gold
was then coined into Mexican currency.
free of cost. and returned TO the shippers
Distributing New Coinage.
In order to prevent scarcity of coined
money and at the same time to put into
circulation the new mintage. the commits
sion was authorized by special law TO