Contract with Parsons Trading Company, 13 July 1916

Mr. John Matthews, Vice President, in the name of the Parsons Trading Company, incorporated under the laws of the State of New York, who hereinafter will be known by the name of “The Company”, and Mr. M. C. Rowland, duly authorized representative of the Mexican Government, acting in particular for the Government of Yucatan (Gobierno de Yucatan) who hereinafter will be known as “The Party of the Second Part”, mutually agree to the execution of the following contract:
FIRST: The Company undertakes to print for the party of the second part twelve million six hundred thousand (12,600,000) bank notes, each three and one-quarter by seven inches (3-1/4 x 7), in various denominations as specified below, and under the terms and conditions provided hereinafter:
A. Series A 5,000,000 1 (un peso) peso notes numbered 0000001/5,000,000
Series B 2,500,000 2 (dos pesos) pesos notes numbered 0000001/2,500,000
Series C 3,000,000 5 (cinco pesos) peso notes numbered 0000001/3,000,000
Series D 1,500,000 10 (diez pesos) peso notes numbered 0000001/1,500,000
Total 12,000,000, all to bear the words:
“Estado de Yucatan Mexico La Tesorería General del
Estado pagara a la vista al portador la cantidad
de (value to be expressed in words at length as above) oro nacional
Bono de Caja
de acuerdo con el decreto de Mayo de 1916
Mérida, Yucatan, Julio 10, 1916
Salvador Alvarado Victor M. Sintra
Gobernador Tesorería General”
Series F 500,000 20 (veinte pesos) peso notes numbered 000001/500,000
Series G 100,000 100 (cien pesos) peso notes numbered 000001/100,000
Total 600,000, these last 600,000 to bear the words:
“La Comisión Reguladora del Mercado de Henequén pagara a la vista al portador la cantidad de (value to be expressed in words at length as above) oro nacional
de acuerdo con el decreto de Mayo de 1916
Mérida, Julio 15/16
Salvador Alvarado Julio Rendon
El Presidente del consejo Gral. Gerente Gral.”
The abovementioned notes are (subject to modification hereinafter expressed) to be printed in the following colors:
Series A – The front will be Black, and the back will be Green Olive (Verde olive)
Series B – The front will be Black and the back will be Prussian Blue (Azul de Prusia)
Series C– The front will be Black, with background Clear Sienna, and the back will be Dark Sienna (Tierra de Siena obscure)
Series D– The front will be Black, with background Yellow Gold (Amarillo oro), and the back will be Yellow Gold (Amarillo oro)
Series F– The front will be Black, with background Yellow Gold (Amarillo oro), and the back will be Yellow Gold (Amarillo oro)
Series G– The front will be Black, with background of Yellow Gold (Amarillo oro), and the back will be Yellow Gold (Amarillo oro)
B. The notes will be lithographed by offset process in four colors (4) on one (1) side and one (1) color on the back. The designs for front and back of each denomination are to be different, and are to be reproduced from steel engraved plates to be supplied by the Company after approval of preparatory designs which are to be prepared by the Company from the rough drafts furnished by the party of the second part for that purpose, it being agreed by the party of the second part that such preparatory designs will be approved immediately on presentation. The notes in each denomination are to be numbered consecutively, as above, such numbering to appear in two place on the face or front side of the notes. The numbering is to be done with all possible care consistent with the conditions and speed with which the work is to be delivered under this agreement, it being understood and mutually agreed that it will be impossible, on account of the speed at which the work is done, to make corrections should (for mechanical reasons beyond control) there be any duplicate numbers or blanks. As a consideration for being released from any obligation to rectify any such duplicate numbers, blanks, or imperfectly manufactured notes, the Company undertakes to supply to the party of the second part, and without being numbered, a quantity of not less than
Twenty-five hundred (2500) notes of Series A
Twelve hundred and fifty (1250) notes of Series B
Fifteen hundred (1500) notes of Series C
Seven hundred and fifty (750) notes of Series D
Two hundred and fifty (250) notes of Series F
Seventy-five (75) notes of Series g
without charging for same, and in so supplying such sixty-three hundred and twenty-five (63235) notes without charge, it is agreed that the Company is relieved of any and all responsibility to make corrections on any of the notes supplied under this agreement should (for mechanical reasons beyond control) there be any duplicate numbers, blanks, or imperfectly manufactured notes. Or, at the option of the party of the second part, such option to be exercised within thirty (30) days from the signing of contract, the Company undertakes to rectify any duplicate numbers, blanks, or imperfectly manufactured notes, on delivery to them in New York of such duplicate numbered, blank, or imperfectly manufactured notes.
C. The notes are to be lithographed by offset process, the work to be equal in every respect to sample “H” attached hereto.
D. The notes are to be lithographed as above on high grade paper of the quality shown by attached sample “I”; to be watermarked with patent reinforced watermark similar to attached sample marked “J”,
but the wording and designs to be as follows such wording to be continuously repeated throughout the entire sheet of paper:
For Series A, B, C and D: “Gobierno de Yucatan”
For Series F and G: “Comision Reguladora del Mercado de Henequen”
the lettering and design to be as per attached samples marked “K” and “L” respectively. The paper is to be of the basis weight (17x22) seventeen by twenty-two inches, twenty (20) pounds to five hundred (500) sheets, the work to be first class, clear, and without undue variation in color, the party of the second part to have the right at the signing of the contract to determine the order in which the different series are to be printed, it being understood and agreed that the order so determined cannot be changed, and that each series is to be completed in such order.
SECOND: The party of the second part undertakes to legalize the printing of the notes by providing the Company with the formal authorization of the Mexican Consul resident in New York.
THIRD: The part of the second part, through Mr. M. C. Rolland, or any other person duly authorized for such purpose by the Government of Mexico (it being understood that such person shall be a direct representative of the Mexican Government and that, unless with the written consent of the Company, he shall not be a competitor of the Company, or the representative or employee of a competitor of the Company) may be present during the execution of the work for the purpose of inspection, and also during the packing, sealing, and shipment of the notes, which privilege shall not be denied to him by the Company, the Company binding itself to accept and carry out any suggestions submitted to it in writing that do not exceed the conditions of this contract, or increase the cost of or delay its execution. Should the carrying out of any such suggestions submitted to the Company in writing increase the cost of or delay execution, the party of the second part agrees to pay the extra cost incurred and extend the time of delivery to the extent of the delay caused by the carrying out of such suggestions.
FOURTH: The Company shall deliver to the party of the second part the notes in sheets of thirty by forty (30x40) inches, each such sheet containing forty eight (48) notes, or in other sizes as may be more conveniently manufactured by them, the sheets being well packed in packages of (500) five hundred sheets each, each package to be wrapped with waterproof material, the paper being packed in wooden cases of suitable weight, such cases to be encircled by iron bands, and each case to be wired and sealed.
FIFTH: The total price for twelve million, six hundred thousand (12,600,000) notes, referred to in the first clause, shall be sixty nine thousand seven hundred and seventy four dollars United States gold, i.e., at the rate of five thousand five hundred thirty seven dollars 61 cents United States gold per million bank notes. This price includes, as detailed in this contract, cost of preparing designs, engraving steel plates, paper, lithographing, numbering, packing, and delivery to steamship dock in New York of the Ward Line or any other regular line of steamers sailing for Progreso, it being understood and agreed that this contract is irrevocable from any cause whatever, and that in the event of a stoppage of sailings or a refusal on the part of the steamship company to receive freight, the tendering of delivery to such steamship company shall be construed as delivery under this contract, and that a certificate signed by the Company in proof of so having tendered delivery to such steamship company, accompanied by warehouse receipt endorsed to the order of the party of the second part, shall on delivery of such certificate and warehouse receipts, be accepted by the party of the second part as execution of that part of the work covered by said certificate and warehouse receipt.
A. The party of the second part undertakes within one week after signing of the contract to supply legible copies of the signatures which are to appear on the notes of the different series, and also to determine and authorize the colors for both front and back of notes of each series, and to immediately approve the lithographed proofs as they are submitted.
B. Subject to prompt approval of preparatory designs, due selection of colors, shades or tints, and prompt approval of lithograph proofs, the Company undertakes to begin delivery in seven weeks, counting from the date of signing the contract, provided that funds to cover the value of contract are deposited on that day, or failing that, seven weeks counting from the time of depositing funds to cover the value of contract, and to complete delivery of (12,600,000) twelve million, six hundred thousand notes by October 31st, the rate of delivery varying according to the order in which denominations are to be manufactured, it being agreed that the denominations calling for the larger quantities of notes shall be delivered at a maximum rate of (480,000) four hundred and eighty thousand bank notes daily, Sundays and holidays omitted.
C. Should the party of the second part delay beyond one week of the signing of contract the delivery of signatures, determination of colors, shades, or tints, as stated above, or delay approval of preparatory designs or lithograph proofs, the time for delivery is to be extended for a period corresponding with the delay.
SEVENTH: The party of the second part, in order to guarantee fulfillment of this contract, will on signing the contract, or as soon as possible thereafter, pay to the Company the sum of thirty nine thousand seven hundred and seventy four Dollars United States gold, which as hereinbefore stated is the price to be paid to the Company for the bank notes, the subject matter of this contract, the Company undertaking to deliver promptly, after sealing of cases, to the Ward Line steamship dock in New York, or such other dock in New York as may be designated by the party of the second part, and to deliver to the party of the second part dock receipt shoeing delivery of such cases to the steamship dock, or other evidence of delivery as specified in the fifth clause of this contract.
EIGHTH: All the provisions of this contract applying to the Company will become void in case of force majeure such as fire, strike, flood, railroad embargo, or breakage of machinery, during all the time such impediment may exist, and the time of delivery extended to an extent equal to the time of such impediment.
NINTH: Upon the fulfillment of this contract the designs and plates which have been used for the lithographing of the plates, together with all spoiled notes, shall be destroyed in the presence of the party of the second part.
This agreement made and executed on the thirteenth day of July in the year one thousand nine hundred and sixteen (1916).
John Matthews
for Parsons Trading Co.
Witnesses to signatures:
Wm. J. Demarest M C Rolland
John A. Monagos
COUNTY OF NEW YORK, SS.
On this ……………… day of …………., in the year 1916, before me personally came Mr. John Matthews, Vice President of the Parsons Trading Company of New York, and Mr. M. C. Rolland, duly authorized representative of the Mexican Government, acting in particular for the Government of Yucatan (Gobierno de Yucatan), to me known to be the individuals described in, and who executed the annexed contract, and severally acknowledged that they executed the same, for the purposes therein mentioned.