The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-07-26

Is the Banco Nacional, or the National Bank
OF Mexico. This like the Bank OF London
and Mexico has the right to issue bank
notes, and its notes are good everywhere
when they are issued in Mexico City and
not by its branches over the country. All
notes of other banks are discounted when
out of the territory where they are issued,
and the notes of the bank OF London and
the National bank issued by q branch at
chihuahua for instance, are taken at dis
count anywhere else. and / am told that the
main banks here take their own notes from
their branch banks at discount This
seems strange, but money is made on every
thing in Mexico and it takes but a small
ground for an extra charge. The National
bank is . government institution and at the
same time private bank. 1t was organ
lied during the administration of President
| Gonzales when there was considerable cor
ruption and when ANYTHING could be
bought Of the government. The result is
that the bank has a number of privileges
not accorded to other banks. 1t is supposed
to belong largely to the Rothschilds, and it
is operated by foreign interests. The In
ternational Bank of Mexico is run on the
debenture principle. 1t issues loans on
mortgages and is a bank of deposit.
In addition to these banks there are seve-
raj private banks, the biggest of which
are Beneckie Brothers and Shirer & Co.
These are making a great deal OF money.
They loan on goods in transit and do q
great deal Of mercantile business. The
Beneckie Brothers or rather tho Beneckie
Brothers successors, ::are an Austrian firm.
They have a capital of 500. 900, and the
original Beneckies made big fortune and
went back to Europe some years ago, leav-
ing the business to their successors, who
are said to be doing equally well. Shirer
& Co. are also doing big business, and an
=. l..
which proposes to make itself one Of the
leading monetary institutions of the city.
This bank will do business on American
principles. 1t will not have so much red
tape as the other banks, and it will not
need an introduction from depositors and
the assurance that the deposit will be con-
tinued for a number Of months, as the other
BANKS are said to require in order that the
privilege Of leaving their money may be
granted. 1t will be a savings bank and will
pay per cent. for time deposits. 1t will
have the right of safety deposit and the
warehouse business and all of the priyi-
leges granted to other banks save that of
issuing notes, and the government will not
charge it stamp taxes for its business.
Between its branches it will put up a big
building and all of the materials for this
are to come in free of duty and there is no
doubt of its success; as the only savings
bank of any Importance in the country and
the only one in Mexico city it can not fail
to make big profits, and it will be run and
patronized by men of large means. One of
the incorporators is the firm of Morris &
Butte, of Kansas City, who have an i'm
mense packing house here in connection
with Mexican capital, and who buy from
$50, 900 to $100,0C0 worth OF Mexican ex-
change every week. The profits on ex-
change here are immense and the credit sys-
tenn Of Mexico ought to develop great
banking business.
Banking is in the first days of its in
fancy in Mexico. The insecurity of the
country in the days Of the revolutions and
until about twenty years ago was such that
the people buried their money instead of
depositing it, and there are to-day millions
upon millions of dollars In the hands Of the
rich hsciendados which are buried in the
ground or hidden away under the walls of
their homes. These men have for years
been making money and boarding. They
don't know what interest means, and they
after year and pile away the surplus. Tits
the same with many of the poorer classes.
Some of these are richer than they look,
and in the coffee districts hear Of men
dying who were supposed to have nothing
and from $4,000 to 100000 discovered
about their huts. This represented the &C
crmulations Of years, and the secrets Of its
existence was communicated from father
to son. Every old Spanish family has its
strong box, and American merchants and
drummers tell me that appearances are
very deceitful here, and that you can't tel
how rich one of these rough looking old
farmers is by his clothes.
As to credits all business in Mexico il