The sun., 1916-04-09
CARRANZA TO BANK
$1O,OOO,OOO IN NJ
Gold Deposits Will Be- l.rt >,
Guarantee Obligation
Of Mexico.

! Following r,imors from ,ar,..
sources regarding the financial i,ars 4,
the carranza Government of Mexico ~,
fact was made known here vos,ori'S
that the Mexican Government intend. D.,
! establish deposits Of gold IN \,,v va.
| banks to the extent of over 10000 lo.
the funds so deposited to he held 4, t,-.
against payments the Carranzi Cone.
ment may he required to make in .t.
country and In part as "A s"gtion %,
proposed Mexican Government rnll 70
serve OF $jO.000.O0o.
The deposit will be effected h, m.
| purchase In Mexico OF drafts o. Amor,
can banks. through which over !,
900 has already been transferred D,
the Mexican Governments Hr .u-' t
local institutions. and 10y 'te ar'ra,
shipment OF gold through Vera cruz
| Because Of the vast dcpro, isff.u ..
! Mexican paper currency, III. M,yHc..
paper peso being worth cents I'm N,y
York at present. II was explained tha.
the Carranza Government has f,r bs
/ desirability OF facilitating lis cNrhs..,
position here by cstablishIng a furd .
| which II might draw to meet ITS .hi =.
| tions for some time. So far IN. o..
has been built up solely through r.
purchase of American drafts. the drl,.,
, forwarded to Mexican planters In rat.
| ment for their sisal crop. the Conn.
sion RegulRdora del Mercado de Hem.
quen having been the principal factor .
exchange transactions.
OF the amount now transferred 20 ~.
account OF the Mexican Go,e-rrre,.
here about an even million came Pom
the commission. In the future It "a 10
lleved that the larger part OF the trans
fer will be similarly effected
ThA lAnants.n
, Is generally known. has contracted rr
IN. entire sisal crop OF IIenequen. f5-
which II pays in gold or in drafts on
New York banks. SO farm tho nrs, -,
months OF its eNistence--it has shiptsl
! roughly 100000 OF gold into Mexico
The rest of the payments. between s. D..
| 100000 and s3.0o0.O00 monthly. hay.
been made by draft. and 1t is estlma..l
by DR.. V. Rendon. In charge of the com.
mission here. that this amount In Ams-,.
can drafts will be forwarded to Mexico
each month in the future and will he n
part available for purchase by the Mex..
can financial commission The ,o.a,
| value OF the Mexican s,ssi crop is zen.
| orally between $30.o00,00o and SO. UOO.
900 a year.
The first actual shipments OF gold s-o--
Mexico. II was stated by Senor Ca.u-.g'
Consul General and financial aser, ~
the Mexican Government here. woull b.
| made In q short time. He eNpla nod 'hs
Carranza had accumulated In the 'rcas.
ury and in Mexican banks slp-'
| amounting TO s4o.ooo0o0 of gold. ari
that the intention was to build up % 70,
resery. of 5O.000.00O.
The shipment OF gold directly !; ".
stated. would obviate the loss drt ..
cul;!es due to dealings in the purchase O.
drafts In the deprecated Mox.cau GU.
rency. Subsequ. .ntly, the CDn-ul-D,Hr't
sa!l. the plan is To cancel al outs,luI.--
issues of Mexican paper currcr rry Or
put out new ISSUE printed hy an hMe-
lean bank note conce,n 20 rrever' TIE
freedom OF counterft .t.nE. which rn
been one OF the chief causes o' confuse
in Mexican currency. with hills hrou-h
out by the poorly trained McNlcau o.
gray,rs.
In regard to the news ot TIE .s'iit
ment of Mexican GuNtrnnltr' f".o. g
her. the secure position of lu't' tr-as
/ a. compared with NeNicon ip.,.'I..5'.
! under prrs.iit conditions wa, pointed O..
IN son. circles Tho depositarics '..
fund Will he several, among 'haN 4
said the National city Bank -ri O..
Equitable Trust Company