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Two unsuccesful proposals for a national bank of issue

For the sake of completeness we can mention two proposals to establish a national bank of issue though as neither was pursued and so did not result in any paper currency they need not detain us.

An issue of $20,000,000

In December 1879 the deputy Trinidad García proposed issuing $20,000,000 in paper currency to ameliorate the nation’s finance.

Though some newspapers such as El Libre Sufragio, La Libertad and La Tribuna welcomed the ideaLa Ilustración Católica, 14 December 1879 others opposed itsee editorial in El Republicano, Veracruz, Año I, Núm. 281, 6 December 1879, on practical grounds such as the recent experience of Servando Canales Molano in Tamaulipas. The government did from 19 December make daily deposits in the Monte de Piedad to back up the issue but it was never made.

Pedro del Valle

On 20 January 1880 the Secretaría de Hacienda y Crédito Público sought authorisation to sign a contract with Pedro del Valle to establish a bank of issue called the Banco Nacional de México. This was withdrawn by the Executive “because having received several proposals from well-established foreign capitalists on the establishment of banks in Mexico, it was considered appropriate for national interests to compare all the proposals received and to be received, in order to choose the most profitable from the treasury and for the country”Memorias de la Secretaría de Hacienda y Crédito Público, 1879-1880,.