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4tt a hearing before the ?ederal Reserve Board held in the office of the Governor on ,;ednesday, October 3, at 10 a.m., PELT: Governor Harding, presiding, Er. Hamlin, Mr. aarburg, Mr. dilliams, Mr. Miler, Mr. Secretary. Mr. Delano, Present also, Mr. Albert Strauss, representing the Treasury Department. Thresent also a delegation representing the mining and melting interests, as follows; Er. S. Morse, 120 Broadway, N.Y. City representing American Smelter fining Jo. Mr. Loeb, Jr.,, 120 Broadway, N.Y. City Mr. D. C. Sluff, Commerce Building, Kansas City." Mrs C. W. Van Law 55 Congress St., Boston Er. Chas. H. Bates, aestory Bldg., aushin ton Lucky. Tiger Gold Mining Co.; Cananeu Consolidated Copper Co.; Moctezuma Copper Co.; Phelps Dodge S:Co. U.S. Smelting and Refining Co. Nacozari A.A. Co.; Moctezuma Copper Jo.; Phelps Dodge (P,7 Co. rorresentin LL. E. B. Schley .-..rthur J. :Lc 4,aatters, 60 State Ztreet, Boston. DoLold C. Brown, 82 Beaver City Potosi Inning Co., 734 5th 41ve.,N.Y. f_lvarado ining TAlling Jo. Cia :Letalurgico Leicana Tezentlan Copper Jo. L:T. Van Law spoke on behalf of the delegation and outlined the currency situation in I:e;.ico, particalarly as affected by a recent decree of the :exican Government. 7e said that no paper was in circulation and that none was acceptable to the people. About a year 1.;.0 the Government had suggested to foreign business men that they import into the country such coin as was needed to wrry on their business. Very recently a new decree had been issued by the 'Lexicon Government, preventing the exportation of gold bars, and forbidding the shipment of silver in various forms except under assurance that one-siaorter of its value in sold would be later returned to !lexica. The situation in ILexico was serious, because during the past year or more many industries previously closed had reopened and needed to use /merican money/in order to continue business. It was impossible to coin silver at the present time because of the high price of silver as compared with coinage value in ::exico, so that gold was the only available medium. shut-down of the industries would be the result of the termination of gold exports. Varioas members of the Board usked for an estimate of the probaule amount of gold needed each month in order to finance all 2xmerican industries in i:exico, but were informed that it was impossible to make such an estimate with any accuracy. Some thought that for the mining industry alone a sum of ‘4;500,000 a month might answer the purpose. In answer to the question whether the decree of the Lexican qovernment was intended as a means of retaliation for our gold export limitation, the opinion was expressed by the mining interests that this was not the case. Mr. Strauss, however, stated that he had advice to the effect that it was so intended. In further discussion tie point was brought out that the demand of the :lexicon Government is not necessarily for limerican sold but simply for the return of gold in some form to an amount equal to one-quarter of the silver export. Un- less arrangements are made to meet this demand the mining and smelting interests cannot ship either gold or silver out of the country and mast suspend business. .fter general discussion of the subject, :Ir. D. J. Haff addressed the meeting, calling attention to the fact that the TTnited States now gets petrolern, zinc, copper and gold from Mexico, as well as other necessary articles and that by causing a shut-down in the industries affected it 'yin cut off further supplies of these items from Mexican souroes. He stated it as his opinion that it was oLzt of the 4lestion to use paper currency, and said that the one calling for quick action designed to relieve crisis the situation. similar statements were made by Mr. Oh_xles H. Bates. leneral discussion ensued, and at the reuest of members of the Board it was a2.-reed by the interests represented to prepare and present some specific figures with reference to their monthly requirements. Thereupon at 11.15 a.m. the meeting adjourned, to reassemble at 4 p.m. this day. VD
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