File No. 812.512/797.
Special Agent Silliman to the Secretary of State.
[Telegram.]
Vera Cruz,
September 13, 1915.
Department’s September 11. Government’s argument is:
- First. Mining taxes have always been disproportionately low. With present depreciated currency they would be so absurdly low as to be entirely inequitable.
- Second. In view of depreciated and fluctuating paper currency the only proper and equitable unit is the Mexican gold peso equivalent approximately to fifty cents American.
- Third. It is not equitable that a product produced by labor, paid in depreciated currency and sold for gold should pay its Government taxes in gold.
- Fourth. It is not unusual for paper currency to be of enforced circulation for the payment of public and private debts and at the same time be declared not legal tender for Government taxes.
- Fifth. The Government’s intention is to increase its revenue from productive mining properties but not to the extent of embarrassing them or of confiscating properties which are not productive or which are undeveloped.
Observation: Inasmuch as the Government has modified the decree of March 1 and has expressed its willingness to deal with the owners of mining properties upon representation, it is respectfully suggested that the owners of mining properties take up their cases directly [Page 945] with the Secretary of Hacienda either through a commission from a given locality or by individual owners in person or through correspondence.
Silliman.