Banco Oriental de México cheques
The Banco Español Refaccionario in Puebla was the sixth of the mortgage banks (bancos refaccionarios) authorised by the 1897 Ley General de Instituciones de Crédito. Its founders were mainly shareholders in the local Banco Oriental de México and were granted their concession on 4 October 1911 with the bank capitalized at $2m ($1m paid). This network of Puebla businessmen had also been involved in establishing, on 17 May 1904, the finance firm of Descuento Español, S.A. with a capital of $3m and registered office in Mexico City. The Banco Español Refaccionario opened its head offices in Puebla (on the top floor of the Banco Oriental) and its first branch in Mexico City (in the premises of the Descuento Español at 2a calle de San Agustín no. 34) in January 1912.
To address the shortage of small change in the first week of July 1914 the Banco Oriental issued a series of cheques drawn on the Banco Español Refaccionario. The cheques would be exchanged for notes of the Banco Oriental in quantities of whole pesos. As the Banco Español Refaccionario was an associated company of the Banco Oriental, this was a means of the bank issuing fractional notes despite the provisions of the Ley General de Instituciones de Crédito.
The notes are datelined 1 July and carried the printed signatures of Miguel Quintana, the Manager (gerente), and Miguel Cesar, the Cajero El Imparcial, 7 July 1914. The text stated that they were redeemable in sums of whole pesos for notes of the Banco Oriental.
Stores appeared to accept these cheques though the tram company at first refused, despite the fact that they were an improvement on that company’s own planillas that had been circulating as changeEl Imparcial, 9 July 1914. The tram company and some businesses were reluctant as the authorities had made no pronouncement about the cheques’ acceptabilityEl Sol, Núm. 37, 7 July 1914.