New-York tribune., 1921-02-07
tinanciers Here
Plan to Open
Mexican Banks
First National Would Es-
tablish Eight Branches to
Aid Obregon in Displacing
institutions of Carranza
Decree Expected To-day
Linking of Business and Issu-
ance of Uniform National
Paper Part of Program
By George E. Hyde
Special Cable to The Tribune

Copyright. 1921. New York Tribune Inc
MEXICO CITY, Feb. 6. - The Firs,
National Bank of New York, which has
been negotiating with the obregor
government for the rehabilitation OF
Mexican finance, has offered to estab-
nsh from one to eight banks in this
country under the new banking laws
when they are enacted. These banks
would form, the groundwork of a new
government banking system worked out
by President Obregon to displace the
Carranza banks.
:. "nen Carranza came into power he
nquldated the affairs of about twenty
banks of issue and centralized the
country's finance in one bank. Obregon
nov now Is making plans for the resstab-
lshmenu OF those regional banks of
issue SO that they may begin the re-
demption Of their note issue. Many
millions of this paper now is in cir
culation, and is quoted at about SO
per cent off. AS soon as President
obregon promulgates the decree re-
establishing these banks this paper is
expected to go to par.
eventually Oregon hopes by legis-
latIve action on the heavy banking prl,-
gram he has prepared to link the
country's banks of issue and put out
uniform national paper. It is admitted
that it will be several years before
the government can undertake the
financing of such bank.
Commission Meets To-day
The banking commission which the
President has appointed to work out
the details of restoring the banks of
issue meets tomorrow The Presi-
oent's banking decree, according to
persons close to him, will be the first
OF series of surprises he is planning.
The fact that Obregon is promul-
eating a decree, reestablishing these
banks, instead of putting the matter
before Congress for action, is taken to
some delay in enacting the laws he
will propose. 1t has been generally be-
heved that banking legislation would
be the first question to be considered
by the Congress when it convenes to-
morrow in special session.
Leaders of Congress have completed
their plans for the new session. The
election of officers has been carried by
the government forces with safe ma
jorities in both houses
Considerable apprehension exists in
oInc3al circles as 60 the intention OF
Congress to rush action on legislation
submitted. Besides Che banking laws,
the two houses must consider oil, agra
rian and labor problems.
Work preliminary to the drafting Of
a petroleum bill has not yet been COM
pleted. Several measures have been
submitted for the consideration Of the
Legislative committee appointed by
0bregon, including bill suggested by
British oil interests. American COM
panies have not officially submitted any
measure, although several of their
legal advisers have made suggestions.
Americans Requests Refused
Persons in closest touch with the
situation say the measure will not re-
peal Article 27, but simply provide
liberal interpretation abolishing the
retroactive features of the Carranza
DEGREES. 1t is also believed in the
best informed circles that the royalty
and rental features of the DEGREES pro-
mulgated by the former President will
be changed to provide gross produc-
tion tax similar to those effective in
Oklahoma and Pennsylvania.