New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-12
Printing Press
Finance Battles
Troubled Mexico
Carranza's Views Of Money
Problems in a Republic
Upside Down


Mexican Government and the cost Of
the revolution we're discussed in detail
by President Csrranza in an ad-
dress made recently before the
Mexican Congress, the text Of which
has made its appearance here for the
frst time in the August number Of
the Mexican Review"
The financial story Of the upheaval
in Mexico is one that deals largely
with printing presses which worked
overtime turning out new currency.
According 20 Carranza's figures,
'671,35+,22l in Mexican paper currency
was issued during the first and second
periods Of the revolution.
The first issue Of paper money was
authorized By the decree of April 26,
1913, and only for the sum of s5,OOO,O 900,
for at the beginning Of the revo-
luton there was no idea as to
the financial needs Of the cam
paign, nor could the duration Of
the war be determined beforehand,
nor was there any experience as
70 the financial value to which pa
per currency could rise. BY virtue
Of this authorization, $4,000, 900
was printed, which was later
known as the "Monclova Issue" In
December, 1913, that issue was ordered
increased to the sum of S2O,OOO,OOO
and in February 1914. there was
need of still increasing it TO
S3O,O0O,OOO. The issues Of paper
money that were effected in order 20
reach this amount, and which amounted
to a total Of S25,OOO,OOO, are what is
now known as the "Constitutionalist
Army Issue" The Constitutiona.ist
Army having occupied Mexico City, in
August. 1914, there was felt the need
of converting cor consolidating) the
for mer issues and, at the same time Of
considerably increasing its amount in
order 10 meet the many necessities that
arose upon the occupation Of the
southern part Of the country. To
this effect. and on the 10Th of Deem
Der. 1914, an interior debt was author
lied for the sum Of Sl5),000,00o, with
which 20 redeem the notes known as
the "Nonclava Issue" and the Con
stitu.ionalizt Army Issue" as well as
90 meet the expenditures that the revo-
luton might have 70 incur, for il was
AZ this time the struggle against
'Vlllaism" began.
The printing Of the bills for this IS
sue was begun in Mexico City, where
nearly S43,0OO,OOO we're printed, and
which we're later known as the Issue
of the Provisional Government Of Mex
.co." The printing Of the bills was
continued in Vera Cruz, increasing the
ssuo 20 s7O.O0O,0OO, and unit. the au-
-hor!zed total Of S2JO,0O0,O00 was
reached. IL was later necessary 70
increase the issue to S25O,0O0,OOO. The
bills princed in Vera Cruz by virtue OF
rh.s authorization were later known as
Vera Cruz paper" Counterfeit ISSUES
IN millions also came into circulation,
and finally the CarranZa Government
had engraved S45O,0OO,OOO OF new non,
councerfeItaD.e currency IN the CnILeu
States. This is taking the place OF Ihe
old issues outstanding so lar as pos
slble. ,.,-
in connection with the revolution nave,
according TO Carranza, aggregated
sos 600 600 gold and SS55,OOO,OOO IN
Manor currency. There now exists
considerable deficit between the re-
CENTS and disbursements OF the reVo-
luton. At the present time the DEL
icit is put at less than 100000 pesos
Discussing the various methods en-
Moved in raising funds necessary 20
running the government, President
rarranza SAYS: THE government, IN
sni+a of the wishes Of its enemies,
Rad necessarily 20 live, and being
rompeIled by necessity, and m order
that il NAV continue 20 exist, u mad
70 sppropriate funds from the metal
lie reserves. The amounts taken 20
date from the banks reach tota! or
2O0O0,OOO pesos.
New York banker ~ecen'ly re
turned from Mexico City said last
week 10 The Tribune that the govern
re7t had taken 100000 pesos, or
500 100000 in gold, from two Mexico
City banks.
Pres;dent Carrsnza says, regarding
the governments relation with the
From the time Of the Governgent
Of General Diaz the banking system IN
Mexico. based on concessions, lmpll-
,a+ad a system of privilege, the neon
renience Of which had been felt Tor
.org time. The banks OF Mexico,
which the Government issued
-unds. loaned 20 the Huerta Govern
~ert. so that 10 might fight the Con-
s-f-utiCnalIst Revolution, the approx
7-a-a sgr of $4,000 900. The Huerta
Government. on the other hand, com
7er1ad the ForcIble circulation OF its
bills. which fact the COnstltutionalst
government found upon its advent.
The Constitutlorallst Government,
engaged in other matters pertaining 20
he campaign, could not, therefore, al
Tend 20 the banking question, even
.hough the bankers, in fact, were pow
,rful financial enemies OF the Revolt .
ion On the other hand, the same
,anks found themselves in the situa-
ION of being unable 20 reestablsh the
Voluntary circulation Of their notes
because, even 4 they still had their re-
serve funds intact, they would have
leen forced TO 'iquidate II they had
been compelled to redeem their notes
40 par.
The Government, however, not des.r-
nC the disappearance Of the stores OF
metallic currency accumulated in the
banks, took the necessary steps that
nd