El Paso herald. (El Paso, Tex.) 1901-1931, 1914-04-03
MEXICAN BANK
RESERVES ARE
BEING KEPT UP
Bills of Most of the State
Banks Are Being Paid
on Presentation.

Information from an authoritative
source in Mexico City, just received
by an Ell PasO bank. gives data of in
tereSt to every business man having
relations with Mexico in a financial
or trading way. Two points of vital
Importance are made: first, that the
general belief in the capital is that the
metallic reserves of the banks OF IS
sue both national and state, are be-
ing maintained; second, that with the
exception of six, all the state banks
have deposited the required reserve
with the BancO NaclOnal and their
bills, now legal tender by decree of
the government, have a definite value.
Huerta's Reserve Scheme.
On Jan. Z last the president made
state bank currency legal tender on
condition that these banks should con-
serve in their vaults the metal reserve
required by their concessions, and
that q guarantee fund based on per-
centage of their note issue be depos-
tied with the BancO Nacional; the
guarantee fund is administered by
board, two of the members elected by
the state banks, one by the clearing
house at the capital, and one by the
would be used to insure the redemp-
ton in coin, of the bills of any state
bank which might be temporarily I'M
able to redeem its notes. Another
decree of Jan. authorized banks to
issue notes for three times the amount
of their cash reserves instead OF dou-
bic as heretofore.
Of course it is impossible to ex-
anime actual reserves OF the banks,
but the general impression of we'll
posted people at Mexico City is that
the reserves are being maintained
Bills OF State Banks.
There is no discrimination in the
City of Mexico against bills of most
OF the state banks. The banks Of
MOreIOs, MichOacan, OaXaca, Chiapas,
Nueyo Leon, and the BancO MercantiI
n 1-r To 4
up the percentage of reserves in the
hands of the BancO NaciOnal, as re-
CURED by federal decree, and hence
the circulation of these bills is limited
to the states in which issued. How
ever, practically all of the bills have
been retired, of the banks of Mich
oscan, Oaxaca, and Chiapas.
Following is a list Of all the banks
of issue whose bills have been de-
creed legal tender by the federal
government, and which have deposited
in the BancO NaciOnnl the reserve as
required by the federal decree of last
January:
Banco NacionaI de Mexico.
BancO de Aguascalientes
BancO de Guerrero.
BancO del Est. de HidalgO.
BancO del EstadO de Mexico.
BancO de TabascO.
BancO de Tamaulipas.
BancO de ZacatecaS.
BancO Mercantil d e VeracrUz.
BancO MinerO de Chihuahua.
BancO de s. Luis POtOsi.
BancO de LOndTes = Mexico.
BancO Occidental de Mexico.
BancO Oriental de Mexico.
BancO Peninsular Mexicano.
BancO del Est. de Qurtaro.
BancO del Est de Guanajuato
BancO de Jalisco.
BancO de Durango.
BanCO de Sonora.
BancO de Coahuila
Central Banks Unshakem.
The two big banks in the republic
are the Banco Nacional and the Bank
of London and Mexico, in Mexico City
They are the only banks of issue in
the Federal District. It is firmly be-
lieved at Mexico City that these banks
have maintained the metallic reserves
to protect their paper currency as
required by their charters and federal
decree, and the bills are circulated at
the capital without any question
whatever as to validity
The arrangement of Jan. Z, was en-
tered into by nearly all the state
banks; q Joined the pool, as against
six that did not.