File No. 812.512/344.
Consul Miller to the Secretary of State.
Tampico, July 14, 1914.
Department’s July 6, relative collection bar and production taxes in gold, following telegram has this day been received from Consul General Hanna, Monterey:
Relative port Charges exchange and points in your telegrams to Department, have taken matter up again and Secretary Hacienda Villareal says he has repeated his instructions to custom authorities at Tampico and other gulf ports to accept New York exchange in lieu of Mexican gold at current rate, two for one, informed me decree issued in March made export duties bar and other port duties payable in Mexican gold.
Also following telegram from Hanna:
Your telegram this date, production taxes according to statement finance Secretary Villareal are payable Mexican gold, Conformity with decree issued in March, Mexican gold is worth two for one and to facilitate payment of these taxes Secretary has instructed that same may be gain [paid?] in New York exchange at same time, that is, two for one. The Secretary called attention to fact that neither constitutionalist currency nor bank bills are acceptable for export duties, bar dues, production taxes etc. This is the best that can be done now.
From above telegram it is apparent that authorities have not issued instructions referred to in Department’s telegram to accept New York exchange at prevailing rates for currency instead of the arbitrary rate of two for one which is the real point in controversy. Taxes must be paid July 15.