All but a small part of this money, it is true, never circulated at its face value, if indeed any of it ever did, a fact that has disposed those who have come into power to refuse to redeem it at its face. It is beyond doubt, however, that the rates at which the issues that have been "redeemed," were paid for, were lower than those at which they were originally issued and that this loss has fallen on the people of Mexico.
The extravagant character of the paper money régime through which Mexico passed and from which she has recently made successful efforts to free herself can be judged best in the light of the currency system, which had been created previously.
Through a large part of Mexican history the coinage has been intimately connected with the taxing system. Precious metals were so important a part of the exports of the country that the expedient of taxing them was early resorted to. The system that came into use was to require all gold and silver extracted to be taken to the mints where it was made into coin at a charge of about five per cent. In addition, an export duty of five per cent on silver and one half per cent on gold was levied on the metal leaving the country. In 1872 export of silver in bars was allowed, providing it went through the mints and paid taxes almost as heavy as if coined. On November 1, 1882, all export duties on metals were removed. Under these conditions currency in Mexico approached more nearly to the character of merchandise than in most countries.
The Mexican eagle dollar coined in the early years of the Diaz régime weighed .869 of an ounce and was of
