File No. 812.512/349.
Consul General Hanna to the Secretary of State.
Monterey, July 16, 1914.
Department’s July 15. The Secretary of Finance informs me again that production taxes, etc., are payable in Mexican gold coin, according to decree of March; that neither bank bills nor silver are acceptable for such export duties and production taxes and that status of the so-called ordinary peso is not being considered in this connection. What I mean by one for two is that Mexican gold coin is required and that the Mexican gold peso is quoted in the United States as being worth forty-nine cents and a fraction as compared [Page 751] with the American dollar, which is practically one for two or one American dollar New York exchange for two Mexican gold pesos, but the Secretary says in lieu of Mexican gold New York exchange will be accepted at the Mexican gold rate if such is more convenient to producers. It seems he is within his rights in this matter and by referring to back of our national bank notes we are reminded that the United States does not accept all kinds of money for similar duties and taxes.
I also understand that the Constitutionalists have foreign obligations which have to be met in gold or its equivalent.