Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-05-27

their traffic. From military operation of
the railways to state operation under
civil authority, when 1t comes. seems an
easy transition 1t is part of the con-
stitutionalist economic and social pro-
gram, but it is not new. The railways
were nationalized under the Diaz regime.
Villa currency Is the circulating medi-
UNI. 1t is. of course. constitutionalist
money, but the Chihuahua issue is al
ways referred to as Villa currency, and
is so quoted by the banks. 1t is said
that the volume outstanding does not ex-
coed S5,O0OiOOO, though nobody knows
how much counterfeit may have been
placed in circulation over the Texas Dor
der.
Death the Penalty.
The first notes were printed on poor
paper. and spurious notes were not diff
flcult to manufacture. These are being
replaced by a new issue, which. 1t is
claimed, cannot be initiated. A procla-
nation stating that any one found guilty
of counterfeiting will be shot is posted
up in various places, but so far as l can
learn no one has yet been executed.
Persons have been arrested in Texas
charged with counterfeiting the Villa cur
rency, but the United States has recog-
nized no government in Mexico to which
they could be extradited.
In general circulation the Villa cur
rency superseded the regular Mexican
currency, though Mexican gold and silver
values are quoted. The Mexican none
tary system Is based nominally on the
gold standard, and until the Madero reso-
luton the silver dollar was worth so
cents. Under Huerta exchange sometimes
has been as low as 81 to 1.
The Mexican dollar fluctuating in this
manner made it impossible to calculate
the fiuctuating constitutionalist currency
and the only possible expedient was to
quote 1t on the basis of the American
dollar. The fluctuations have varied with
the varying fortunes of Villas army; but
the Villa currency now is considered fair
ly stable at quotations ranging from II
to 20.
Living Is Cheap.
Soldiers are paid in this currency, when
paid at all. and recognition Of 1t is en-
forced in daily business transactions. The
prices OF commodities have been made to
conform, and Chihuahua is probably the
one place in the world today where per-
sons with an income in gold would have
no cause to complain of the cost of living.
The rates at a good hotel for the best
accommodations amount to $1.25 a day
gold. Railroad fare figures out 1 cent
mile. professional man who formerly
had good income told me the hardship
the circulating medium worked to him.
The charge for professional visits had
followed the currency. He now got IS
Villa money for call. as against 81
gold formerly. He should have $40 Villa
money to maintain the parity. but he
cannot collect fees on that basis.
He is maintaining his family in Texas
on account of the unsettled conditions in
Chihuahua, and Texas cost Of living is
reckoned in gold. The professional man
says that when he goes into bankruptcy
he won't be able to figure out whether it
will be Villa currency bankruptcy or
a gold bankruptcy; but he is sure that II
the present situation continues he will be
bankrupt.
Villa Fixed the Rate.
Gen Villa showed financial strategy
equal to his military strategy in pro-
viding that in certain government trans
actions his currency should have fixed
valuation regardless of fluctuations.