Bisbee daily review., 1917-04-01
MEXICAN GOLD COIN OF PESO VALUE WILL
 BE MADE IN THE US.
New York Bankers Sign Con- tract With De Facto Gov ernment Tor The Supplying or reso Hoid Coins. @ZU,- UUU,UvU AutnorIZed.

NEW YORK, March 31.-Arrange- ments have been entered into between A. lselin x Co. and representauves of the de tacto government of Mex. Ico whereby the former will undertake ,o nave coIned in thIs country soiu pesos which mIil De legal currency ior .deMco. Contract was slgned Mon- day. short wnIie ago Mexican gov ernment authorized cOnage oi -v,VUU,- JUU aOld pesos anu contemplated com. age in tnis country is the result of that decree. Arrangements have been made with Pmladelpnla mint to coin this gold.
 TOT tne present the coinage will pro- ceed m limited amounts, as occasion demands The gold will be supplied through New York bankers as needed TOT payment of MeXicalI custom du- ties by American exporters and by others desiring tO make payments Tn Lat country.
 Were it not for conditions in Mex GO and the disturbed international situation, this incident might other .ise offer great possibilities for thai country. 1t might constitute a step sh.cn would ultimately result i'll put Ing Mexico upon a gold basis. In fact, that development Is looked for Dy some students Of sMeXican affairs. Hopes had been entertained of bring ing about this important move, but 1t was realized that existing economic and political chaos in Mexico was a complete obstacle. Of course, more than 20,O0O,O00 gold pesos would be re quired for such a purpose, but it was expected that minting operations in the long run would not be confined to that amount.
 Those who picture possibilities of putting Mexico on a gold basis at present found their ideas upon pre- vailing position of silver in the worlds market. Silver today is at about its highest price in so years, and this would offer an excellent opportUnity for the Mexican government to de llonetize silver. It is largely the great demand for silver by Europeal governments for coinage. since the rvar began that has driven up the price. If Mexico were in position to take advantage of the opportunity, if gould virtually mean that Europe pays for putting that country on a gold basis.
 To carry out the plan there will have to be a withdrawal of the silver peso in circulation and its place substituted by the gold peso. This would be el- fected through the banks with co- operation of the Mexican government. As silver was withdrawn from cIrcu- lation and shipped to the United States, new coined gold would be sent | in payment. The high market price of the silver, as compared with it's monetary value in Mexico. would represent the profit to the Mexican government This process could be continued, so that, in time, and pro vided the value of silver was main !, tained, sufficient gold would be inject 1 ed into the Mexican currency to main
 tain the higher standard.
 But in the view of practical bankers
 this is nothing more than a dream just now. Mexico is not able to take advantage of the silver situation. Any
 one who knows Mexican condition:
 will realize how impossible it would
 be, under the present demoralization
 to secure cooperation. not only of tho
 banks. but of the people. Just now
 the Mexican is hiding his money. No
 even the offer to change silver foi
 gold would induce him to disclose hi!
 possessions. Carranza can issue al
 kinds of banking laws. but economi'
 laws will prevail.