Thread: The Silver Bill in the Mexican Congress. LOL

When i was 15 years old i remember 1 Dollar was equal to 3 Pesos and after devaluation (caused by some sucker President) 1 dollar was equal to 11 pesos, almost quadruple.
Since that day the stuff in USA is still being cheaper more than here.
And this bill is equal to 19 Dollars. Just eliminate one nought and is almost equal to 20 bucks. And 100 bucks just add one more Zero and then you have 1000 pesos.
Example 200 pesos is more or less equal to 20 dollars and viceverse


100 bucks is more or less 1000 pesos and viceverse.


And silver bill at moment i do not know
Silver Bill


This is going to help about money devaluations VS. Dollar.Honorable Assembly:

The Undersigned, federal deputies (congressmen), members of the LIX Legislature of the H. Congress of the Union, in accord with the stipulations of articles 71, section II, of the Political Constitution of the United Mexican States; 55, section II, 62 and 63 of the Rules for the Interior Government of the General Congress of the United Mexican States, submit to the consideration of this Honorable Assembly the present Project to extend with a subsection d), article 2, and with a second paragraph, article 7 of the Monetary Law of the United Mexican States, based on the following:

RECORD

1. – On Wednesday the 16th of March of 2005, the Treasury and Public Credit Committee of the Chamber of Deputies, rejected the Memorandum forwarded by the Senate of the Republic on the 3rd of April, 2003.

2.- The Memorandum expressed, in its declaration of motives, the convenience of introducing into circulation silver coins with no nominal value, in parallel with and complementary to the fiduciary monetary system. However, it incorporated two considerable defects: it did not determine any specific coin to be introduced and did not specify the method by which it should be quoted. For the same reason, the Reform did not guarantee the fulfillment of the objectives originally contemplated by it.

For this reason, the undersigned set forth the following considerations:

CONSIDERATIONS

I.- We agree that it is convenient, in order to favor popular savings, to introduce a coin with intrinsic value. But we consider that only one coin should be introduced into circulation with an official equivalence in pesos and not several and undefined coins, in order to prevent confusion on the part of the public or difficulties for the management of monetary policy by the Banco de México.

II.- We agree that this coin should be a coin with no nominal value because in the past there have been attempts to incorporate silver coins within the fiduciary system and all have had to go out of circulation when they reached the “melting point”, that is to say, when the intrinsic value of the silver in the coins exceeded the nominal value engraved upon them. The destination of these coins has invariably been the refinery or numismatic collections, and the Banco de México has been forced to suspend the minting of these coins.

III.- The Troy ounce constitutes the basic unit of valuation of precious metals at the international level, and therefore, using this unit would simplify the process by means of which the Banco de México would calculate the value equivalent in pesos.

IV.- We propose that the coin to be used, be the presently existing “Libertad” ounce, because this is a coin created by Banco de México itself under the technical specifications determined by the Mint and which at the present time, enjoys the status of a legal tender coin according to the Monetary Law presently in force. Even if this coin does not circulate as money at the present time, both the public and the banking system are sufficiently familiar with it. The “Libertad” ounce is a very well known coin, both within the country as well as in some foreign parts, which contributes to the process of introducing it as money.

V.- To achieve the integration of a silver coin within a monetary system it is imperative to take elements from the two systems: the fiduciary system and the international precious metals market, with an extrinsic quote which may be subject to an increase if the price of silver rises and retaining the last quote even if the intrinsic price falls. It is only thus that this coin will not be forced out of circulation and only thus, that the public will not be subject to the fear of acquiring a coin which may be worth less, the following day. Without these two essential elements it is not possible to convert silver into money and it will indefinitely remain a commodity.

VI.- For the same reason, we propose the addition of a seigniorage to the “Libertad” ounce in favor of the Banco de México, of not more that 10 per cent and adjusted to the higher multiple of five pesos; and that once an equivalence is determined, the next equivalence may not be reduced for any reason. This provision will have the effect of protecting savers and the Banco de México itself from speculative operations and fluctuations in the price of silver.

VII.- In the case of the “Libertad” ounce, which has no engraved nominal value, it is indispensable that legislation be explicit, in the stipulation of what has always been implicit with regard to coinage: that the legal tender value of money cannot be diminished. Thanks to this sanction, the ounce will continue to be money notwithstanding any possible fall, at any given time, in the value of the material of which it is made.

VIII.- The foregoing constitutes a technical advance in the monetary field, for since the exclusively fiduciary paper régime imposed in 1971, in violation of the Bretton Woods Accord, we have witnessed several advances with regard to technology, in the ever swifter transmission of the property of monetary balances; whereas technique having to do with the creation of monetary units of intrinsic value has been nonexistent. For this reason, the implementation of this measure will be the cause of great international prestige for Mexico.

IX.- History demonstrates that a transitory fall in the price of silver does not affect a coin endowed with a fiduciary component. The most eloquent example is that of the silver peso with fineness of .720. During the period in which 458 million of these coins were minted, from 1920 to 1945, the price of silver fluctuated considerably: when the Banco de México was created in 1925 the price of the Troy ounce was 69.1 U.S. cents and it fell as low as 25.4 cents in 1932. Not once, in those 20 years, did anyone ever return a single .720 peso coin to the Banco de México, as a result of a fall in the value of the silver contained in those pesos.

X.- The silver coin incorporated into our fiduciary system by means of this new monetary technique will fulfill a social function, that of being a means for the storage of savings, which are the fruit of personal labor. In this sense, Mexicans will be able to rely on an instrument which will allow them to retain the purchasing power of their savings, even in conditions of extreme instability. When the silver coin ceases to be a commodity and turns into true money, there will no longer be a spread between purchase and sale prices, which will guarantee that the coins will be tendered and received at the official value, and not at the value which each commercial bank or economic agent may determine arbitrarily.

XI.- This alternative will be especially useful for the majority sector of the population which has no access to the commercial banking system and whose savings in cash, which are gathered with more effort than the profits of the wealthy, now lose value as a result of inflation.

XII.- In order to prevent speculative movements in the price of silver from forcing the Banco de México to issue high quotes for the silver ounce, a provision for an exception is included, which will permit the Banco de México to retain the last quote for an indefinite period, until it can determine that the price of silver is validated by the market.

As a result of the foregoing, we propose to the Full Body of the honorable Assembly the following Project for a:

DECREE BY WHICH ARTICLES 2 AND 7 OF THE MONETARY LAW OF THE UNITED MEXICAN STATES ARE EXTENDED, IN ORDER TO INTRODUCE A SILVER COIN INTO CIRCULATION.

SINGLE ARTICLE.- Articles 2 and 7 of the Monetary Law of the United Mexican States are extended, Article 2 with a section d) and Article 7 with a second paragraph, to read as follows:

Article 2

……

d) The silver “Libertad” ounce, that will enjoy legal tender status for the amount corresponding to its official equivalence in pesos.

The Banco de México shall, exclusively, determine and modify the official equivalence of these coins. This equivalence shall be determined according to the amount of precious metal contained in them, expressed in pesos, plus the cost of minting, plus a seigniorage of not more tht 10 per cent in favor of the Banco de México and shall be adjusted to the next higher multiple of five pesos. The equivalence shall be published in the Official Daily of the Federation and once an equivalence is determined, the next equivalence shall not be diminished for any reason whatsoever.

In case of an extraordinary rise in the international price of silver, the Banco de México may maintain the last equivalence without taking into account such a rise, during such time as it may judge convenient and until it judges that conditions in the market have stabilized. At the conclusion of such a period, it shall issue a new equivalence based on the international price of silver contained in the coins if it arrives at a new, higher equivalence than the one already established.

When the decrees that relate to the coins referred to in sections b) and c) of this article deal with optional alloys for the composition of the metallic coins, the Banco de México shall determine their metallic composition by designating one of the alloys established in the corresponding decree or substituting the alloy there designated, by another one of the alloys.

Article 7

Debts for any amount payable in Mexican currency shall invariably be denominated in pesos or in fractions thereof. Such debts shall be paid by means of the delivery, for their nominal value, of Banco de México bills or metallic coins designated in Article 2 sections b) and c).

These debts shall also be payable by the delivery of coins designated in section d) of Article 2 of this law, for the amount corresponding to their official equivalence in pesos.

Notwithstanding this, if the debtor shows that he received from the creditor coins mentioned in Article 2 bis, he shall be able to pay his debt by delivering coins of this same class according to the quote for them on the day the payment is made.

TRANSITORY

SINGLE.- The present decree shall go into effect the day following its publication in the Official Gazette of the Federation.

Respectfully

Legislative Palace on April 5th, 2005

Interesting Beto, Mexico is strengthening its pesos by backing them with Silver. The Untied States did away with the silver standard 40 years ago. We need our money backed by silver or gold as well.