The Mexican Peso: A Century of Currency Debasement (Part 2 - The Constitution of 1917)
Following the revolutions and counterrevolutions in the 2nd decade of the 20th century, Mexico’s current Constitution of 1917 was adopted. This document is claimed to be the first of its kind promising “social rights” including redistribution of land and resources, compulsory public education (indoctrination), setting wage and work hours, right to food, right to healthcare, etc. It is also claimed that Mexico’s Constitution of 1917 was the inspiration of Weimar Germany’s Constitution of 1919 and Russian Constitution of 1918.
It laid the foundation for consolidating control of every important industry and resource into the hands of the central state (political ruling class).
A reversal from Mexico’s previous Constitution, which to me, focused more on expanding individual freedoms, the 1917 document moved the nation toward a strong central state while pacifying the people with promises of free goodies. As always, any promises of “free this” and “rights to have that” would be paid for either through the overt plunder of taxation, nationalization and confiscation or covert plunder of debt issuance and currency debasement.
1918 – Peso coin is debased to .800 fineness of 14.4 grams silver to the Peso (ASW .4663)
1920 – Peso coin is debased to .720 fineness of 12 grams silver to the Peso (ASW .3856 oz)
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With a new collectivist styled constitution providing the cover of “legality”, the political and financial ruling classes were set to relieve the Mexican people of their burden of personal responsibilities and along with it, their wealth.
Up Next: The Mexican Peso: A Century of Currency Debasement (Part 3 – Nationalization and Public Works “For the People”)
Click here for Part 1 – Independence
*All coin photos are from my personal collection
Historical Source 1
Historical Source 2
Coin Info Source