Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-02-21
NEW FINANCIAL
SYSTEM PROPOSED
FOR MEX|CANs
Carranza Expects TO Inaug-
urate Central Bank Of Issue
Patterned After the Present
American Reserve Plan,

sosslre JovrhsL srfeist tHtsto "issl
lei paHo, Tex. Feb. 20..--Sintcmcnis
made 10 Mexican officials that the
carranza government WAS about ia
make new money issue to rephcc
The present deprecated currency
wcrc confirmed today bs a Mexican
official recently arrived from Guada-
laiara. who outlined The plan bv
which the financial advisers Of the
dc factu government hope To- estab-
lish monetary system based upon
the $3.50. 600. 600 metal reserves now
held lay the banks of Mexico.
American Federal system.
The plan, as suggested to Venus
tinno Carranzp, first cher Of the con-
stitutionalist party. contcmplatcs tho
Establishment u national bank nn-
der conditions resembling the federal
reserve system ~ the United states.
ehf national bank which would BE-
known a. the Bank OF Mexico would,
under the plan as outlined hnve a
capital stock OF 200 900. 900 pesos. The
government would subscribe One
third or approximately s3,333,333 pc
aos, and the member banks the re-
naming two.thirds. The latter would
be required TO subscribe In proportion
90 thcr present reserves of metal
money The government, the imam.
clal advisers say, would pay ts as-
easements "as far az practicable IN
metal money ana guarantee the re-
mandcr BY plcdglng half Of an ex-
port duties on precious metals and
taxes on oil which are to be paid IA
gold
Government Control.
Tho government would control the
BANK Of Mexico which wonld have
tho cole right 70 iesuo currency This
currency would be issued In proper
ton 60 the metal reserves. As all
the banks IN Mexico are expected 10
subscribe and since then toinl re-
serves arc estimated 1T 250000.000 |
pesos the new currency issue will he
5o,0o0.oo0 pesos, and this amount /
IN now bank notes, as The customs /
officials a. Juarez and other points I
were told some days ago. already has I
bren printed and shipped from New f.
Yofk
Retire Iiai CURRENCY.
with this issue the government +
sud expect to retire the present flat /
u .cncV This new issue would ho
tanleed hV tho metal reserve, ana !
Ihsher supported by bonds uf the de- Z
Vam.ut Il the interior beoring three +
per cent interest A Inc start Il y
expected they would acquire value I
estimated az high as 90 cents on the
dollar as compared with -four cents,
ilie ruling quotation On The present
fiat currency i
With the establishment of the BANK
" Mexico the present banks issuing
currency would 90 on Of existence
under cnrranza's financial decree Of
September II. 1915. This deercr
mad, 4 necessary fot hanks Of issue
70 have metal money reserves equal
to the mount ct currency issued.
naulne institutions whose charters
were not forfeited under this decree
would be required TO- lon ana give
then metal RESERVES into control Of
!
tlual NJ private banking institutions
Moratorium Possible
II any of the capital stock of the
Iank It Mexico should remain an
subscribed on account Of dissolution,
ur for any other reason, the shares
would be- offered to the public. pay
ment to BE- made Ia metal money.
The present Carranza currency IT,
60 be retired gradually. u moratorium I
having betn suggested by the de fac
to governments financial advisers to
prevent The liquidation 81 debts IN the
presont flat money pending the es-
tahlishment OF the proposed Bank ~
Mexico'H lssne of notes as LEGAL ten
der.