Page:Mexico's dilemma.djvu/56

42 banks of issue had assumed an attitude of open hostility against the Government of the Revolution contributing to the depreciation of the government paper money and were conducting themselves in a manner against public interests through speculations outside of their sphere of action, the First Chief believed proper to make more radical decrees to put an end at once to the defective banking systems then expiring and to leave the field open to a better organisation.

"Therefore on the 15th of September last year a decree was issued repealing all laws in force until that date on institutions of credit and putting the banks of issue under the direction of Boards of Receivers which have been operating them up to date.

The Constituent Congress which met in Querétaro was perfectly aware of the need of substituting the defective banking system by another more reasonable and in consonance with the economic needs of the nation; with the result that the new Magna Charta provided for the establishment of a sole bank of issue.

"The Department of Finance has been studying since then the bill which in due time the Executive will submit to Congress on the organisation of the sole bank of issue; but as arrangements to obtain new capital must consume much time, the