The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-28

for II does not provide any way to retire
the various existing issues nor does II
sufficiently describe the issues II intends
to retire, nor does II make any provision
for money issued In good faith by per-
scns or temporary Governments dc
facto.
81 do not see how any financial people
can he induccd to buy these contem-
plated bonds. but the country Ia In such
desperate straits that IL cannOt oven
walt for the bonds and y 10 he
engraved SO temporary bonds without
coupons have been hastily printed to he
exchanged for the engraved n later
and the Treasury will hold these tenn
porary bonds to secure circulation.
The bonds issued under the Diax Gov
are already In default on their
interest payments for the reason that
the Government has no gold and there
is no money In circulation except paper.
THE bonds issued by the Diaz 0ov-
m arc good and u eventually
he paid or the country be everlastingly
In International ~disreputeA Tit custom
house receipts are pledged to meet the
principal and interest Of the Madero
bon issues. but one can easily imagine
what chance there IL for the payment Of
their interest for a long time to come. As
NV WIN FtllFN VI
have left little Of the large volume of
commerce that existed during the Dias
regime.
The internal revenue receipts. stamp
axes &c. are pledged to meet the pro-
~vlsional issues Of last September under
Carranza, and this new bond issue Of the
provisional President Is secured In the
same way. But the income. II must not
be forgotten. Is coming IN IN paper OH a
basis of = to /. though the bonds are
supposed TO be on u gold basis.
hanks Tighten Up.
AS early az July 2. 1914. the Cana
dian Bank OF Commerce requested its
large depositors. in view Of the disturbed
conditions and uncertain future. not to
Increase their individual deposits above
"A certain maximum. As early as Sep
tember is. 1914. no bank would accept
further deposits from the corporation I
was investigating for. nor from any Of
its large depositors whose maximum had
already been reached.
Nor would any bank cash checks Of
any other bank nor would Il cash any
checks excepting those drawn on itself.
In fact. at this time very few checks are
being used except by large corporations,
for the reason that everybody 10 COM
Delltu 10 dCttDt any itRhi ttUuST OIISF0U,
and AS there Is a large variety Of paper
money In circulation. almost all of which
has very little value behind II, every one
tries to pay his liabilities with the days
receipts.
The only banks. considered safe here
are the branches of the British and other
foreign institutions and these branch
banks will not. as already stated. ac-
cept deposits, nor will any Of the other
banks. There Is not a safety deposit
vault or box to no had at any price any
where in the city, and there Is no burg
larry insurance-not even ILoyd's. The
money accepted in good faith one day
may he invalidated the next, though
usually some notice is sent out and notes
are often revalidated on presentation
Good One Day, BAD NEXT.
"a day or two ago | stood in line
from 4 o'clock in the morning until 10
TO hold a place for the agent OF the cor
poration | am here for and We finally
got our notes validated. yet only this
morning. when an attempt Was made
TO pay out some 900 pesos. we were In
formed that the money was invalid
though We had spent II freely the day
before. Paper money which the Govern
ment authorities refused this morning
was afterward taken to a bank and
changed TOT o'her paper money wnich
was current.
81 ave taken money from q certain
cashier which he knew MAS doubtful.
but | had no difficulty in getting rid OF
IL because dressed ana looked IKE a
man accustomed TO having 700 notes and
sPemu'ns 'heNh 'ree's'
ihere ~ NOT an inteiligent human
oeihs III HieNico VINO does not blame
fresldent wilson personally Tor his
snare IN creating inc present chaot