Branches of the Banco de Londres y México
Before 1888, the Banco de Londres y México redeemed its own banknotes only at the branch of issue. Then, on 3 January 1888 Federick Howes, the manager of the Veracruz branch, announced that his office would now accept Banco de Londres y México notes from any branch at their face value . Now importers could use Banco de Londres y México notes, knowing they would be good throughout the country at their face value. They could borrow at the Banco de Londres y México, change the notes needed for tax payments into silver coins (or Banco Nacional de México notes) at the bank’s Veracruz branch, and use the rest to finance their transactions. Previously, importers would borrow from the Banco Nacional de México, receiving their loans in Banco Nacional de México notes, part of which they would use to pay customs duties and the rest to buy merchandise. These notes, however, could only be used in or near Veracruz, since Banco Nacional de México branches elsewhere would accept them only at a discount. This mean that if a Banco Nacional de México borrower wanted to transfer their funds or use them to buy products from outside the state they had to either pay the discount, use a money order (which were also discounted), or send specie coins (which was risky and expensive). With the new Banco de Londres y México policy, however, provincial merchants now had an incentive to finance transactions at the local Banco de Londres y México branch, and businessmen everywhere with business in Veracruz now had an incentive to prefer Banco de Londres y México banknotes.
The Banco Nacional de México, obviously, was not pleased and instructed their Veracruz branch to stop accepting Banco de Londres y México notes. Not only was the bank worried about the proximate advantage the Banco de Londres y México gained from its new policy, but it also worried that this move might presage the loss of their monopoly over tax payments. They hoped that “if the situation can be maintained it will greatly help us counteract the intentions of said institution”references needed from Noel Mauer, The Power and the Money: The Mexican Financial System, 1876-1932.
Following Carranza's circular núm. 7 and the bank's failure to reopen its branch the Constitutionalists took over the branch at calle de la Constitución 72 and its annexe, at 7a Calle de la Pila 92 in early 1914. On 23 February 1915 , their lawyer, Laureano Roncal, asked governor Saravia to restore the two propertiesADUR, Libro Copiador 298, Hacienda 23 February 1915 - 26 May 1915, p6.
The branch opened in 1898.
0n 27 October 1897, in decree núm. 42, the state legislature authorised Federico Comparot, representing H.C. Waters, manager of the Banco de Londres y México, to establish a branch in Mazatlán. The branch opened its doors on 23 March 1898, under the management of Roberto HendersonASIN, Luis Rivas García, Mazatlán, 18 September 1900. Henderson was manager until 3 April 1907.
The first attempt to establish a bank in Michoacán was when the local congress on 31 May 1882 authorised governor Pudenciano Dorantes to organise with one of the existing banks in the capital to establish a branch or agency in Morelia but nothing came of this. Then on 25 June 1888 the governor, General Mariano Jiménez, agreed a contract with Santiago Wastall, representing the Banco de Londres y México y Sudamérica, to establish a branch but this failed over the question of jurisdiction.
Finally, on 27 November 1897, half a year after the Ley general, the Banco de Londres y México finally established a branch at 2da calle Nacional núm 27, under a contract dated 26 June 1897 between the state executive and Iñigo Noriega, as apoderado for H. C. Waters, representing the bank. Article 4 of the contract stated that the bank only had an obligation to pay in Morelia the notes that the central office had sent for circulation in Michoacán, with the special overprint clear and easily visibleCoromina Amador, Recopilación de .leyes, decretos, reglamentos y circulares expedidas por el Estado de Michoacán. Morelia, Imprenta de la Escuela I. M. Porfirio Díaz, 1900. Tomo XXXIV.
Two months later the bank set up agencies in Zinapecuaro, Ario de Rosales and PuruándiroPeriódico Oficial, Tomo VI, Núm. 6, 20 January 1898.
The Banco de Londres y Sudamérica established a branch in 1864 under a concession to the business houses Velasco Hermanos and Nerón y Compañía.
San Luis Potosí
Davis y Compañía were the representatives of the Banco de Londres, México y Sud America in San Luis Potosí with agency number fiveLa Restauración, 7 May 1865.
On 1 February 1889 Santiago Wastall, as representative of the Banco de Londres y México, signed a contract with the state government to establish a branchPeriódico Oficial, San Luis Potosí, 24 April 1889,which enjoyed exemption from taxesASLP, RPPC, Notorio Antonio de P. Nieto, t. XXVII 1889, inscrip. 37. It only had to redeem notes issued in San Luis Potosí. Holders of other notes did not have a right to redemption and holders of San Luis Potosí notes could not redeem them in Mexico City. To do so they had to pay a commission to the bank.
The bank acquired a site on the north-east corner of the junction of avenida Hidalgo and calle Valdez Carrillo, a block from the Plaza de Armas. The building was completed in March 1902 and opened on 1 May, with the branch offices on the ground floor and the home of the manager, D. Motta, and his family above.
The building was demolished in 1952.
The Banco de Londres, México y Sudamérica had opened a branch in Veracruz in 1864.