The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-03-28
!MEXICAN FINANCES ARE
IN 4 HOPELESS TANGLE
No Metallic Money, and Many Kinds of Paper Currency,
Ties Up Business, Writes Merchant
of Mexico City.

letter from a business man Of Mexico
city 20 a friend in this city. which
nss taken a month TO reach its destins-
ton. follows:
"MExrco CITY.
Financial conditions here are in
q most unsettled state and II is hard
for those In the United states to
understand them, and the situation IL
so complicated that II will be almost Inn
possible 60 convey to YOU a correct idea
" II, but as II is interesting shall en-
deavor to make II az clear as possible.
There 10 absolutely no specie or
metallic money OF any kind In circula-
ton in Mexico even the copper centsvos
have wholly disappeared. In this d.
lemma the three factions ia issued
paper currency. as have also some OF the
States. Some of the issues have been
handsomely engraved. but the fractional
currency Ia printed on cardboard slips
and closely resembles subway OF ele-
waited railway tickets in New York.
Banks and business houses who have
continued 20 do business have been
forced TO receive those variou currencies
At varying rates Of exchange from . 10 l
up 10 the present basis of about s to l..
Exchange has gone down Ave or six
points since I arrived and there is APP
p~srently no hope OF its rising again to
anything like the old basis maintained
during the Disz regime OF . to l.. at
leaN for a very long time.
Much COunterfeit MOney
made much more complicated by the
fact that zach faction as It gains con-
troll. declares the currency issued by
the other factions counterfeit and void.
The country is literally flooded with
money. much Of which Ia really fictitious
or counterfeit. but all Ia passing current
n We are doing business like children,
simply because We ms tell the good
from tho bad.
I'm view OF the great number Of issues
and the fact that whichever faction
gains control declares deeds to proper
ties and all paper currency issued by
other factiars than itself void. results
IN our naNnG, instead or u stable OASIS,
a Re bel basis.
ITO illustrate the confusion that re-
suits from the decrease In the rates of
exchange. | cannot do better than to tell
YOU how the tramway company finds
Itself. This company has issued a cur
rency OF its own for the purpose OF facili.
tAting he transaction OF its business In
the utter absence OF c~entavos OF any
description whatever, either coin or
paper. This is called wales and they
are not legal tender and cannot be used
in lieu OF currency except for the fares
on the trAmways.
The company cannot charge more
than the standard fare, So when one
rides the payment is made on paper OF
Wales which at present have a ratio Of
about s to /. Therefore the tramwa
10 really only getting about one-sixtf
Of what ii hould for Its fares.
Government Runs Cara.
"Some time ago the men struck foi
an Increase of 10 per cent. in theii
wages. giving AS a reason the increased
cost of living due to the constantly de
preciating value Of the paper none,
they received. The increase was refused
by the company, so the Government toor
control OF the tramways and raised III,
wages IS per cent. Now as tho com
pany's income is Gu, to the ratio of 8 to
and its expenses are increased % pc
cent, II will he interesting to know wha
the shareholders will get. The sam
condition applies To- the taXlcabs anC
other public utilities.
The Government itself is involved
Mexico, as YOU know. belongs to the In
ternational Postal Union, and Letters
An,.tp hn,a Far fnrAt. ,,..A- .A-,,tr