Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-19

Mexico the banks issued notes of their
own, or rather notes against one another
Some of these are still in circulation, and
are generally accepted since it is assumed
that. in order to protect their credit. the
banks will be bound to redeem these
notes.
Scrip Promises to Pay.
The constitutionalsts wherever they
came into control usually repudiated the
temporary notes issued under the Huerta
government. At Monterey, large part
of the circulation consisted of wales" or
scrip promises to pay. These were re-
pudiated by the constitutionalists. but
they found il necessary to exchange
something like $4,000 of them for con-
stitutionalist currency. since the poorer
people were absolutely without money of
any kind when the wales were out
lawed.
In Tamauipas the existing monetary
disorder has been accumulated by the
constitutionalist commander outlawing the
notes issued by the banks, since Feb
ruary IS.
Notwithstanding the military successes
of the constitutionalists, the financial
outlook grows worse instead of better
as more territory comes under their con-
as to the real circulating value of the
constitutionalist currency. The stu
alton approaches monetary anarchy.
In the effort to revive trade and in
duStry little encouragement can be had
to foreign houses, because they cannot
afford to sell goods and take their pay
in currency which they are not sure will
be redeemed. at the value at which they
are asked to take it. On the other hand,
Mexican importers cannot afford to pay
gold for foreign goods and sell them
on the uncertain basis of constitutional
list currency.
Printed in the United States.
\ leading cause of the uncertainty is
the large amount of spurious currency
which is known to have been put out.
The recent issues of constitutionalist
money, so-called, have been printed by
reputable firms in Washington, New
York and San Antonio, and cannot be
counterfeited easily But any kind of
printing press seems to have been con-
sidered sufficient for the first issues.
Most of these paper notes were Of 50
poor quality that after a little usage
they fell to pieces.
Ordinarily this would be an outright
loss to the whole circulation as wen as
to the individual holders of the currency,
who would be unable to patch It togetnsIr;;
But the counterfeiters got into the held
and there is no question that they put
into circulation enough of the spurious
notes to keep the general volume unlm-
paired.
When the time of reckoning or redemp-
tion comes this counterfeit money Is 60
ine to be a serious problem. Gen. villa
himself has plan to solve the problem;
1t has all the simplicity to be expected
from a soldier-financier. When the au-
tborized issue had reached 100000 and
some attention was given to the steps
which should be taken for redemption the
matter Of the counterD.its was brought to
the notice of Gen. Villa. He said:
I'VE will redeem 100000 and then
ouit If some Of that is counterfeit we
can't help it, and if there is more than
sg. 600 600 out we won't be responsible for
the excess
This may prove the only feaslple plan,
bnt it is not likely to quiet the fears OF
peopIe who in the meantime are asked
to accept constitutionalist currency.
CHARLES NJ. PEPPER.