El Paso daily herald. (El Paso, Tex.) 1881-1901, 1901-01-09
THE STRINGENCY
Is Belittled BY Them, But the
General fublic Finds the
Tightness Very
Real,

In spite of the efforts of the govern
ment and the banks of Mexico to kefp
down alarm the financial conditions in
Mexico are becoming more alarming
every day.
Rumors of different character have
been afloat in the United States about
the conditions in Mexico for severas
months but conflicting statements
have come from Mexico and the true
state of affairs has been kept from the
public in so far as authoritative state
ments are concerned. Knowing that
Don Enrique Creel. manager OF the
Banco Minero in Chihuahua, and The
father of the banking business in the
republic, was authority on the subject
The Herald sent special representa-
tive to his bank this week to lea!h
the conditions from him direct.
His explanation of the conditions is
given verbatim below and can be TAX
en- as a bankers side of the question.
However there is another side, that nf
the public. In every state in una r.-
public of Mexico the financial strin-
gency is being seriously felt and i'll
wrought. The largest bank in Quad
lajara failed a month ago and as re-
SUIT many large and many more
small firms have been forced outof bus
mess in that section. The bank notes
of that institution, amounting to near
ly one million dollars. are now dead
money in the hands of the public.
The banks that have been exporting
silver have found themselves in bad
state and even now their notes will
not be cashed by any other bank in the
republic. 1t was only a few years ago
when Enrique Creel established the
clearing house in Mexico City amt
brought all the bank notes in the rs-
public to par at any other bank or in
trade. Since the middle of December
this state of affairs has changed and
only two banks in the republic now
are the Banco National and the Banco
Minero of chihuahua and Mexico City.
The notes of the Zacatecas banks cam
not be cashed in chihuahua or any
other city in the country and they are
all coming in to the banks there. The
result is expected to crush those banks
within the next few weeks.
Loans have been almost entirely cut
on in every part of the republic and
even American gold will not produce
Mexican silver coin. Interest has in
creased to practically prohibitive
point and no one can afford to pay it.
Banks have ceased to pay time depos-
is until the time arrives and where
hey once charged discount on depos-
is they are now paying big interest
N deposits of a month or more The
merchants cannot borrow money from
he banks at any price and they re-
urn evil by refusing to deposit Their
honey with the banks.
In Chihuahua Monday a man tried to
ecure silver dollars on $500 in United
tates gold. He was told that the bank
id not want his gold and that they
ad more American money in the
anks in New FORK than they could
Sc. He insisted and was told that he
ould get $1.70 for his money when
w weeks ago it was worth So This
common thing in Chihuahua and
early illustrates the real conditions.
The government is doing all it can
} relieve the situation and has re-
ased the silver reserve in the treas
~. This gave little relief and all the
ints in the country were thrown op-
/ last Friday. This move was only
curative as there is no silver bullion
coin. The bullion has been leaving
e country in the ores sold to the ore
usts and after going through the
fineries in the east goes to the mark