Arizona weekly citizen., 1882-02-05
THE FRANCO NAc.oNAL Msz1oASo."

Mexico has now taken another ster
 forward towards the position in
 the commercial world to which her
 great natural resources entitle her.
 Mexico has never had barking sys-
 tem. The business of the co7ntrv has
 largely been done by transfer of coin or
 interchange Of commodities. Asa result
 there has never been that community of
 interest among business men Of the
 same and different sections which in
 most civilized countries furnishes a
 strong cohesive power and guarantees
 greater stability to the government
 It Is @ praiseworthy fact thar the changes which have taken place in the
 Mexican government have not invali- dated any concessions made by previous administrations. Many of the conces- sions under which railroads are now being built were granted years ago, but m spite of revolutions and counter-rev- olutions they are respected and kept in fuli force.
 This fact will go far to strengthen the credit of the banking system now being inaugurated. This bank is a private in- stitution with certain publi- guar..r es. The shares are held, ls,0OO in Mexico. ] l2.G0 in New York and 5000 in Paris. and S3,O0QOO0 of the capital stock has been paid in. For every SI,OO0,000 in |
 the bank S3,000,O00 in notes can be is- sued. The government has an officer to sign the lotes and such safeguards of examinations, etc, as will ensure safety are provided for
 The government gives this bank the preference for all government loans and public works and will do its business through this bank. At all places where the bank has branches the government will accept its notes in payment of all dues.
 The bank is exem ted from taxation and its employees from military duty. And the institution will not be sub jected to forced loans.
 The capital of the bank cannot be drawn for thirty years. Should the bank make a great deal of money it can not purchase its shares or withdraw them from he market. If the capital sinks to one half at any time, the Government will call meeting of the shareholders ant the bank will go into liquidation. In such an event the Government vln guarantee all depositors. For the pur- poses of the bank, the shareholders will be Neucans only. That Is, all foreign CTS who invest money in the shares must give up all claim to protection from their Governments in all bank affairs They will have the Mexican courts to appeal to in such matters and will have equal rights in all such cases with the natives of Mexico themselves. For this reason diplomatic agents will not. under any circumstance, 5e permitted to interfere in matters rcla,:ngto the bank. In no event can the concession be transferred to any foreign government, nor, should such transfer be made, nor u1ll Il be recog- nized by the Mexican authorities. In the same way no mortgage can be exc cuted to any foreign power Mexican capital may take 20 per cent of the shares.
 One of the most important parts of the scheme is the provision that the bank IS to advance loans to the Government at the rate of S4,Ooo,ooo per year when called upon so to do. This will put an end to revolutions in Mexico. ! These have hitherto been begun by dls- con;enled men, and ;he Government has been powerless to cope with them to. lack of money. Able as they will be under this arrangenlent to draw at the rate of one million dol 1 lars quarter, they wiil be enabled 1 to raise troops, purchase supplies of any kinds and resist with etfec- auy revelu- l tiona-y project. This arrangement then | $ the best guarantee the shareholders of the bank have of the stability of lag and order in inc country. For such advances ! .he bank is to charge 0 per cent, and the Government is to Equidate every month by drafts on customs and other Government dues. As long as the pres -nt excess ofreceIpts over expenditures ! in Mexico confines no advances will be needed. It might be, however that a | time would come when such an advance ! would save the government from destruc- l ton.
 The board of directors in Mexico con- ,is,s oE President, Senor Antonio de Mier Cells; Directors Senors, J. Vi. ! Bermejillo, Felix Cuevas, Ramon c. ! Guzman, Sebastian Robert, D. C. S;ruch. | The managing director is Senor J. Nam ] melsdorL There is a board of directors ! ID Paris which wil work in harmony | with those in Mexico. A branch of the l bank has already been established in | Vera Cruz and the agencies are being ! opened throughout Mexico as rapidly as DOssIble