Mexico -- History -- 1910-1946; Mexico -- History -- Revolution, 1910-1920
There was the financial question. It came to Villa in this way. He
noticed, all of a sudden, that there was no money in circulation. The
farmers who produced meat and vegetables refused to come into the city
markets any more because no one had any money to buy from them. The
truth was that those possessing silver or Mexican bank-notes buried them
in the ground. Chihuahua not being a manufacturing center, and the few
factories there having closed down, there was nothing which could be
exchanged for food. So, like a blight, the paralysis of the production
of food began all at once and actual starvation stared at the town
populations. I remember hearing vaguely of several highly elaborate
plans for the relief of this condition put forward by Villa’s advisers.
He himself said: "Why, if all they need is money, let’s print some." So
they inked up the printing press in the basement of the Governor’s
palace and ran off two million pesos on strong paper, stamped with the
signatures of government officials, and with Villa’s name printed across
the middle in large letters. The counterfeit money, which afterward
flooded El Paso, was distinguished from the original by the fact that
the names of the officials were signed instead of stamped.
This first issue of currency was guaranteed by absolutely nothing but
the name of Francisco Villa. It was issued chiefly to revive the petty
internal commerce of the State so that the poor people could get food.
And yet almost immediately it was bought by the banks of El Paso at 18
to 19 cents on the dollar because Villa guaranteed it.
Of course he knew nothing of the accepted ways of getting his money into
circulation. He began to pay the army with it. On Christmas Day he
called the poor people of Chihuahua together and gave them $15 apiece
outright. Then he issued a short decree, ordering the acceptance of his
money at par throughout the State. The succeeding Saturday the
market-places of Chihuahua and the other nearby towns swarmed with
farmers and with buyers. Villa issued another proclamation, fixing the
price of beef at seven cents a pound, milk at five cents a quart, and
bread at four cents a loaf. There was no famine in Chihuahua. But the
big merchants, who had timidly reopened their stores for the first time
since his entry into Chihuahua, placarded their goods with two sets of
price marks—one for Mexican silver money and bank-bills, and the other
for ’Villa money.’ He stopped that by another decree, ordering sixty
days’ imprisonment for anybody who discriminated against his currency.
Public-domain text, read in full here on John Shaqi.
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