El Paso herald. (El Paso, Tex.) 1901-1931, 1915-06-10
Mexican PESOS
JUMP IN PRICE
Villas Silver Decree Is Re
sponsible; China Called
Upon For Coins.

For the first time in years. Next
can pesos. long the favorite medium
Of exchange in China, are being ex-
ported from that country to Mexico.
Orders have recently been cabled Dy
New York bankers that will result il
shipments Of thousands of the pesos
to the United States, where they will
be exported to the country of their
manufacture
Cen Francisco villa. the leader Of
one faction in Mexico, is directly re-
sponsible for this half-acrOss-t he-w0rld
journey of the Mexican peso. Some
months ago he issued a decree that
laborers in that portion of the cOun-
try controlled by him must be paid in
silver The big fOreingn mining COM
panies promptly sent men to the bor-
der and began bidding for pesos The
price was the around IS cents, or ap-
proximately the value Of the actual
silver contained IN the coin But the
heavy demand soon created a fictitious
price. The quotation on the peso
steadily mounted until il has now
touched the top, sales having been
made this week as high as As cents.
Demand Greater Than supply.
But even at this greatly increased
price the large buyers soon found
that the demand could not be filled.
New York exchange men continued to
quote the peso at its actual silver
value, but kilograms to New YORK
brought back the reply that the small
supply Of pesos in the east had long
since been exhausted The supply N
the border has practically disappeared
and for this reason China is being
called upon to return the visiting pesos
to the land Of their birth.
It is the sudden rise in the silver
peso that has been largely responsible
for the rapid increase in value Of the
Mexican bank notes and the state
issues. These bills, like the silver GER
tificates issued in the United states,
are redeemable at any time in silver
Local exchange men here declare that
II suit were brought against the state
banks by holders OF their paper cur
rency they could be forced to redeem
them-prOvided, always, that they still
mad any assets LEFT with which to pay.
To Recognize Federal Money.
Another reason for the rise in old
federal currency is the statement OF
leaders OF the third revolution here
that should the new revolt gain a foot
ing the only money that will be used
in territory controlled by it will be the
old issue. Then, too, holders of the ]
currency believe that some sort of a
Of the Mexican muddle is about !
IN sight and the notes will be a prior ]
lien in any reorganization Of the
finances Of Mexico, the fiat money OF |
the faction recognized If any recogni-
ton is given, coming second and the 4
fiat money Of the faction losing out
coming In on the reorganization as a !
very bad third.
Believing that a settlement is not far
distant the officials Of many Of the 4
state banks in Mexico are shrewdly /
purchasing their own money. It, Is 4
stated by money brokers here that as
an example practically the entire issue
OF the BancO de Sonora has been pur-
chased by interests identified with that Z
bank Heavy purchases Of Banco de !
Lacatecas bills have recently been
made pOmgfTnra h1a -
Ing or federal issues directly attribu-
able to speculation has also tended to
raise the price.
Gamma Money in Demand.
Carranza money sells higher than
villa money for the simple reason that /
1t will buy something, while the Villa /
money has a very limited purchasing !
power Export and import duties at all /
ports in Carranza territory-and Car
rama territory controls all the ports
OF importance-can be paid in the Car
rama currency. Taxes, such as the Z
huge sums paid by the oil companies
ina Tampico, can be paid in the cur
-ency and all wages can be settled in (
Carranza money This. of course.
creates a demand by the large foreign /
companies and their steady purchases
has boosted the price, which is now
around 9 cents.
Another factor, one that tends to
Keep up the price OF both the Carranza
lnd federal money, is the fact that fed
eral money is allowed to circulate
Carranza territory and many mer-
chants, especially in Veracruz. are
turning their Carranza money into fed
sral money. For months federal money
.ound in Villa territory has beeh sub
.ect to immediate eonfiscation.
Bank Clerks Buying.
Local bank clerks are said to have
been buying the Mexican federal cur
-ency as speculation and will hold
y Until the price goes higher. The ]
Up 10 buy is said to have come
rom the east and much surplus vaca-
lon money is being invested in the old
federal bills, it is said.
. kilograms are being sent out OF Ell
-aso daily to the eastern money mar
aels LOT FEDERAL currency, although
The supply Of this class Of rnonev IN
The east is limited.
AMERICAN BREAD Is
PEETTGEn IN MEVTCR !