The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1914-05-05
GEN. FUNSTON
SIREN CT HENS
j. s. OUTPOSTS.
AT VERA CRUZ
Mexican Federals Get Rein
fOrcements, While Rowing
Bands Forage and Scout
About u. S. Lines.
BY THOMAS p. COATES.
Special Staff Correspondent Of the In
ternational News Serxice.

ternational News Service.
VERA CRUZ, May 5.-All the Amer.
tcan outposts were strengthened today
by Brigadier General Frederick Funs-
ton because of the increase in num-
bers in the Mexican federals who are
lying west and northwest of this city
Rear Admiral Badger was also asked
to hold sailors in readiness for further
operations on land.
The United States troops stationed
on the outer lines report rowing bands
of Mexicans almost daily and it is sup.
posed that these are scouting and for
aging parties sent out by General
Gustavo Mas.
General Funston is cooperating with
United States Consul w. w. Canada,
the members of the military govern
or's cabinet and with Rear Admirals
Fletcher and Badger in working out
the details for the rehabilitation of the
government of Vera Cruz. The most
perplexing question now facing the
officers of the force of occupation is
that of money and exchange rates.
Solve Currency Problem.
1t is probable that the United States
treasury department will be asked to
work out plan for the establishment
of Mexican currency, which will guar
antee and insure the face value of the
paper money. The rate of exchange
at present is three pesos for one gold
dollar, the Mexican pesos being equiv
alent to the half dollar in the United
States. Some merchants are demand
ing $3.50 in Mexican money for one
gold dollars worth of goods.
Financial sharks" have begun cor
nering Mexican money in the belief
that tt United States authorities will
redeem it at is face value when the
treasury department of the local gov
ernment is established under Ameri-
can Jurisdiction.
"Unbearable" was the term used to-
day by Col. Plummer, the provost mar
shal, in describing the financial con-
dition in Vera Cruz.
Unable to State Rate.
I'VE will be unable to meet con-
ditions fully until General Funston
learns exactly what plans the United
States government has for Vera Cruz"
said Col. Plummer. IF we officially
proclaim any monetary rate of ex-
behind it to guarantee it's integrity.
Therefore, we must know just what
the United States wants to do before
we take any definite action"
Three tentative plans are under con-
sideration for a solution of the finan-
cial situation. They are as follows:
Establishing Of an exchange
bank, backed by the United States
government, but operated by pri-
vate bankers, which would ex-
change money at rates to be Of
ficially published later.
Establishment of a financial
institution along philanthrOpic
lines with officers of the United
States army and navy serving
without pay Such bank would
give the people service free of
charge, the exchanges of money
being made at rates to be posted
when the bank is established.
establishment of a postal
savings bank, having the power to
handle checking accounts as we'll
as to exchange money. Such an
institution would be conducted on
the lines of regular postal savings
banks in the United States except
with wider powers.