The Washington herald., 1916-08-29
Seen and Heard BY George Miner.

.~ ssS~~~ W SSVA o. s'>@~e~s'
Merida, Yucatan. Aug. 2s-An official an
nouncement was made here this morning that
settles definitely and auspciously the money
question, in this part of Mexico at least
You can now get ST of American gold for
every So of Mexican money-that is the money
IN circulation here which is issued by the Com
ision Reguladora Mexican paper money has
been so deprecated and has fluctuated so much
that this good news comes to the Merida busI-
ness men almost like shock When | was
here hve months ago, the money issued by the
Reguladora was worth about cents for each
peso. Today peso is worth so cents
That is putting the currency back on the same
old prosperous basis that obtained under the
D1az regime. It's not a bluff either, for the
Rcguladora has the American gold to redeem it
with and it is redeeming it as fast as the script
is presented.
The Reguladora not only has the gold to
guarantee its outstanding paper at two to one,
but to guarantee it about ten times over, that
while Mexican money has been pretty thoroughly
despised during the last year or two this partcu-
| lar issue OF it is the best guaranteed money
| in the world
This solution of the money problem is quite
simple one when you come to look into it. The
offer to redeem the paper with gold is almost
colncident with the arrival here from New York
| of Dr. Victor A. Rendon the manager of the
Reguladora's enormous henequen business in the
| United States. Gov Alvadaro and Dr. Rcndon
| held a number of long consultations over the
financial problem. They found that the Regula-
dora had issued only some 100000 of paper
money in payment for the henequen to the far
mers. This money is practically the only money
| that is in circulation here They had on hand
in their safes more than 100000 in American
| gold So thew said Iet's abou+
paper money being secured by gold and really
redeem all Of it that's presented at two for one
AS Gov. Alvarado the state and his word
! is law and as Dr. Rendon runs the commits sion
under him, it required legislation to put the
idea into practice at and start the good
work
The fact that the commission has sold more
than $3o,ooo,ooo in gold worth Of henequen since
the first of last January shows how well secured
these 100000 pesos they have issued are They
will not be recalled, but kept in circulation, for
now they are just as good as gold and have
backing for ten times their face value. There's
where they stand the highest of any paper
in the world No other country has paper
money secured by ten times its value in gold for
you can easily figure these pesos as secured for
| three times their value when it is remembered
that the Reguladora is selling henequen at the
rate OF more than 100000 month in gold
and has market for the entire crop as fast
as it comes in.
The first effect Of the announcement that
this paper money would be redeemed in gold
was rush OF merchants to the telegraph office
More than 200 were standing in line there when
the office opened each one eager 10 wire an
order for merchandise from firms in the United
States. On account OF the war scares the
deprecated currency and one thing or another
none of the merchants had been buying any
goods to speak OF for the last year, certainI,
no more than were absolutely needed Thev
| found 1t difficult to buy stock with money that
had little or value. In consequence the
shelves in the stores looked pretty we'll de-
pleted.
Now, however, change will immediately
come over the business aspect OF this city and
all of the Yucatan Peninsula as we'll. Big con-
Slgnments OF manufactured goods will be arriv-
ing in a few weeks and times will unqucstion-
ably be on the boom here.
| Naturally, this sound money and business
prosperity will have good effect on the politi-
cal and business conditions in the rest of the
republic where things are not so PROSPEROUS,
1t will without doubt strengthen the money is
sued by the government in Mexico Citv and it
IS hoped ultimately lead to that money being
put on sound gold guaranteed basis The
Carranza money which the Reguladora has is
sued here in payment for henequen it has also
redeemed on the gold basis of 30 cents
Amerlcan-tor each peso. 1t had some 100000
pesos OF this out against which it has dcposit
OF S25o,ooo in the Chase National Bank in New
York.
The results of failure to recognize Hucrta are
loo 100 PWUig1nantly known to need repetition Presi-