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90 The Carranza government had meanwhile decided that the time for reliance on paper currency had passed and a decree issued that all payments should thereafter be made in coin.

This third attempt at regulating the currency system was inaugurated in December, 1916. It had a success far beyond what might have been expected and certainly far beyond that which would have attended it had not conditions outside the republic become abnormal and such as to help the Carranza government in its new experiment. The World War was now in its most critical period. Prices were high and there was an unprecedented export demand for all articles that the much-tried country was able to produce. These conditions brought to Mexico the unusual circumstance of a favorable balance of trade. During previous years a large part of the gold coinage had been exported, and with the coming of the paper money era silver disappeared or fled the country. Even the smaller metallic coins tended to be withdrawn at one time and had to be replaced by little slips of stamped cardboard.

Now, however, with the favorable balance of trade, gold was flowing back into the country, silver was rising in price and silver continued, as it had always been, one of the things produced in large quantities. Between December, 1916, and July, 1918, the coinage of money within the country reached the unprecedented total of $93,900,000, from which coinage, it may be remarked in passing, the government had profited through the stamp tax, assay charges, and other levies to the amount of $6,000,000. This coinage was not only silver. Gold