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Rh difficult every day until these institutions ceased to properly operate and soon became merely speculators in the paper money issued by the Revolutionary Government. At the time the bills had already suffered considerable depreciation which fluctuated between 60 and 90 per cent of discount on nominal value.

"When the duties of the campaign permitted the Government of the Revolution to fix its attention on the financial organisation of the Republic a preliminary decree was issued fixing a period within which the banks of issue must regulate their fiduciary circulation in accordance with the general principles of the law of institutions of credit. As this decree was issued in Vera Cruz, where the necessary estimates for knowing the economic situation of each one of the banks in detail was lacking, it was believed at the beginning that many of them would be in condition to continue their operations on complying with the general banking law.

"When the Department of Finance came into possession of the balance sheets of the majority of the banks of issue it was seen that although their reserves were in conformity with laws in question in relation to their fiduciary circulation, the banks were not in condition to continue operation because a great part of their assets which went into large nominal figures in fact represented an insignificant real value.

"As, on the other hand, the majority of the