The revolution in Tepic

Following the power struggle between the Villistas and the Constitutionalists loyaI to Carranza, the Territory of Tepic was left in complete economic chaos. In a report to Gobernación, Juan Carrasco claimed that one of the causes of the economic turbulence in the Territory was the lack of confidence in paper money. He explained that although the paper money was compulsory currency, there existed the "fear that from one moment to the next, it could be retired from circulation by superior disposition." Carrasco also reported that experience had demonstrated that each time it had been necessary to declare issues of paper notes null and take money out of circulation, or when the government was forced to impose a war subsidy, the businessmen of the Territory, whom he referred to as the "executioners of the people”, salvaged what they considered lost by doubling and tripling the prices of their goods, and even came out benefitting with larger profits. Nevertheless, Carrasco also claimed that despite his attempts to impose price controls, only a few consumers had presented themselves before the authorities to report infractions. This prompted him to refer to the inhabitants of the Territory as being "conscious victims of their own censurable silence." Carrasco advocated allowing foreign companies to compete with the local companies in order to normalize business conditions in the Territory.

On 23 December 1915 Subsecretario de Hacienda Rafael Nieto reminded the Administrador de Rentas, A. G. Guzmán, that according to circular núm. 48 holders of sábanas and dos caritas, among others, had to hand them in to the Jefatura de Hacienda or Administracion Principal de Timbre in exchange for a receipt. On 19 January 1916 Guzmán told Mexico City that they had not yet received copies of the circular and therefore holders had missed the deadline of 31 December. On 22 January Nieto extended the deadline to 31 January, but on 29 January Guzmán asked for a further extension until the end of February, which was agreed by the Secretario de Hacienda, Luis Cabrera, on 2 February^{El Bien Público, 5 February 1916}.

The lack of confidence in the currency continued to cause a general problem for the economy. According to Juan Torres, the abolition of the Veracruz Gobierno Provisional de México currency had increased the crisis in the Territory in an "alarming" manner. This resulted in a scarcity of goods and caused prices to rise even further ^{AGN, Fondo Gobernación Período Revolucionario., 165/34 Memorandum of Torres to Carranza, Tepic, 8 June 1916: AGN, Fondo Gobernación Período Revolucionario, 81/21 informe Torres to Carranza, Tepic, 27 October 1916}.

On 4 May 1917 Andrés G. Guzmán, the Administrator de Rentas of the former territory reluctantly handed over his office to the newly designated Director General de Rentas of the state of Nayarit, Antonio de la Torre. There was $3,521,469.55 in notes withdrawn from circulation, composed of

In addition there were

All these were contained in 35 strongboxes and one packet^{Periódico Oficial, Tomo 1, Núm. 3, 13 May 1917 and Núm. 4, 20 May 1917}.