New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-03-21
Carranza Representative
Here Arranges for New
Coinage
To Withdraw Silver
$50, 900, 900 in Yellow Metal
To Be Injected Into Re-
public's Currency

What is believed 90 be the first step
toward placing me Republic Of Mexico
on gold basis has been taken by rep
re5cntatives Of the Carranza govern
ment in this city, acting in conjunction
with local bankers.
DR.. Alfred O. Caturegli, financial
agent of the Mexican government, an
nounced yesterday that arrangements
have been entered into with A. Iselin
& Co., whereby the latter will under
take to have minted in TINS country
new gold coins which will be the legal
currency for Mexico.
Negotiations which have been pend
ing for several weeks were concluded
Monday when the contract was signed
by the bankers and the government
representatives. II is proposed to coin
the money as soon as practicable. For
the present the coinage in this coun-
try will be limited to comparatively
small amounts, DuJ II IS expected that
in all about $l0,OOO,0OO worth OF hi
dalgos," OF Mexican ten-poso pieces,
the equivalent Of the United States 50
gold piece, will be coined. Arrange
ments have been made 10 have the
coins struck of at tue Philadelphia
mint simultaneously q considerable
amount OF new gold coIrs viii. be mint
ed in Mexico. ana II Is hoped at an
early date 10 have approximately $780,
coo 900 Of gold to inject into the coun-
try's currency.
Gold Supplied Here
The gold coined in the United States
will be supplied through the agency OF
the New York bankers as the metal is
needed for the payment Of Mexican
customs duties by American exporters
and By others desiring 70 make pay
ments in that country.
DR.. Caturegli said yesterday in speak
ing of the Mexican financial pro-
gramme:
Before the revolutionary upheaval
in Mexico approximately S75,000,000 OF
Mexican gold was in circulation besides
the large amounts Of silver and paper
When the Diaz government was over
thrown and civil war ensued this all
disappeared from circulation. We hope
by injecting new gold into the cur
rency and the withdrawal Of silver and
worthless paper 70 bring out much OF
the gold that has been boarded and. in
eidentally, 20 bring order out of none
tary chaos. This will tend to restore
confidence and ought, in the long run,
20 rehabilitate our finances"
He intimated that after a satisfac-
tory start had been made and it became
known that Mexico was getting on a
stable basis financially, 1t was highly
probable that the government might
e. - - The ffnffaH Nfnfng
The basis for the proposal TO put
Mexico on a gold basis is found in the
prevailing position Of silver in the
worlds market. Silver to-day is at
the highest price in a quarter of cen
fury. This offers the Mexican govern
ment an excellent opportunity TO de-
monetize silver and set up gold as the
standard. II is largely the great de-
mand for silver by the European gov
ernments for coinage purposes since
the war that has driven up the
price Of that metal If Mexico sue
ceeds in establishing gold as the basis
OF her currency, It would virtually
mean that Europe paid the bill.
Central Bank Planned
To carry out the plan proposed there
would have 10 be withdrawal OF the
silver pesos now in circulation in Mex
leo. The exchange can only be ef-
fected through the banks with the CO.
operation of the Mexican government,
and this is why details of the organ
ization OF new central bank Of issue
are being completed. II is hoped that
inside of six months Mexico will have
such an institution. As the silver
was Withdrawn from circulation and
shipped out Of the country, the new
coined gold would be substituted. The
high market price of the silver, as
compared with its monetary value IN
Mexico. would represent the profit TO
the Mexican government in the opera
ton. This process could be continued
so that in course of time, provided
current silver prices were maintained,
sufficient gold would be injected into
the system to maintain the higher
standard.
While practical bankers do not think
that this can be done Immediately, u
is believed that the new gold coinage
arrangement is the entering wedge.