Examples of the continuing use of private issues
The Compañía Redo, Eldorado
The Redo family, the owners of the sugar mill at Eldorado, 54 kilometres from Culiacán, was one that perhaps best represented the survival of the Porfirian oligarchy after the Revolution. It had started the mill in 1900 and in 1902 formed the company of Redo y Cía. Diego Redo, who had served as state governor in 1909, resisted Iturbe’s advance on Culiacán, then went into exile in Europe in 1911 but returned in 1923.
In May 1931 state senators Rodolfo T. Loaiza and F. V. Bermúdez complained that the Compañía Redo of Eldorado were paying its workers with its own notes, which were accepted at half their value by local stores, thus doubling the exploitation of the workforce. This was in complete violation of the lawNacional Revolucionario, 20 May 1931 though possibly done because of the economic crisis of the time.
In July 1931 under the heading “There was still a Tienda de Raya in the Country” El Universal reported that employees at a sugar mill at Navolato had complained to the Secretaría de Industria y Comercio. The company has invested about five hundred thousand pesos in vales that it gave out, alleging a shortage of currency. These vales were accepted by local stores, so the favoured casas comerciales could be regarded as tiendas de raya, which the Revolution had abolished. The workers feared that if the mill closed, they would be left with a paper-money that would have no valueEl Universal, 10 July 1931. Another newspaper said the reason for issuing vales was the lack of silver and gold coinage in the areaEl Informador, 11 July 1931.
In fact the sugar mill did close in August because of high taxes and an excess of production, putting more than one thousand five hundred families out of workEl Informador, Año XIV, Tomo LII, Núm. 5002, 5 August 1931.