Page:A Study of Mexico.djvu/208

198 and all promises to pay, notes, bonds, mortgages, etc., were drawn up with the invariable provision, "payable in hard dollars (pesos fuertes), to the exclusion of all paper money existing, or that may be hereafter created." The only bank-notes issued at that date were large bills of the "Bank of London, Mexico, and South America"—21 branch of which, unchartered, was established in Mexico in 1864. Their circulation was extremely limited; small traders and the people at large declining to accept them. Since then, the "Monte de Piedad" (the national pawnbroking establishment), a "national" bank, and various banks of foreign incorporators, have issued notes; and the practice thus initiated has rapidly extended to all sections of the republic. The basis of issue of all the regularly chartered banks is understood to be substantially the same as that of the "Banco Nacional Mexicano" (Mexican National Bank), which is authorized to issue three millions of paper for every million of coin or bullion in its coffers, which notes are legal tender from individuals to the Government, but not from the Government to individuals, or between individuals. This bank is chartered for thirty years, and is exempted from taxation during that period. Its present circulation has been reported at over $5,000,000. The possibilities, if not probabilities, therefore,