File No. 812.512/340.
The Department of State to the British Embassy.
memorandum.
Referring to the memorandum, dated July 13, 1914, from His Britannic Majesty’s Embassy, in regard to the attempt of the port authorities at Tampico to enforce payment of bar dues and production tax on oil in American gold, the Department of State has the [Page 752] honor to inform His Britannic Majesty’s Embassy of the receipt of a telegram from the American Consul General at Monterey, in response to the Department’s telegram on the subject of July 15.
The Consul General reports that he is informed by the Secretary of Finance that production taxes, etc., are payable in Mexican gold coin, according to the decree of March; that neither bank bills nor silver are acceptable for such export duties and production taxes; and that the status of the so-called ordinary peso is not being considered in this connection. The Consul General points out that the Mexican gold peso is quoted in the United States as being worth forty-nine cents and a fraction as compared 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 of Finance says that in lieu of Mexican gold New York exchange will be accepted at the Mexican gold rate, if such is more convenient to producers.
The Consul General adds that he also understands that the Constitutionalists have foreign obligations which have to be met in gold or its equivalent.
Washington , July 22, 1914.