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Excerpt from The New Banking Law: Of the Republic of Mexico Porfirio Diaz, Constitutional President of the United States of Mexico, to the inhabitants thereof, know ye. That the Congress of the Union has seen fit do decree as follows: The Congress of the United States of Mexico decrees: Art. 1st. The Executive of the Union is hereby authorized to issue the general laws which fire to govern the concessions, establishment and operations of the banks of issue in the States of the Republic and Federal Territories, in accordance with the following conditions: I. No concession shall be granted unless the concessionaires make a deposit in bonds of the National Public Debt, whose nominal par value shall be it least equal to 20 per cent of the sum which the banks must have in cash before commencing operations. II. The minimum subscribed capital shall be five hundred thousand dollars, of which at least the half must be paid up in cash before the bank commences operations. III. The cash balance in each bank must never come below the half of the value of its notes in circulation, added to the amount of deposits returnable on sight, or on two or three day's notice or even less. IV. No bank shall be authorized to issue notes for a greater amount than three times its paid up capital. V.The notes shall have a voluntary circulation, and their minimum value shall be five dollars. VI. Only the first bank that may be established in any State of the Republic or in any of the Federal Territories, shall be granted exemption from or rebate on the payment of taxes. The other banks shall pay all the taxes as provided by the General Laws, and they shall also pay a special tax to the Federation of 2 per cent per annum on the amount of their paid up capital. For the purposes of this section, those banks which are already established will be considered as the first banks always provided that they subject themselves to the provisions of the General Laws. VII. The banks which may be established in any State, will not be allowed to open branches outside of the territory of that State for the purpose of redeeming their notes, without special permission from the Executive, which permission will only be granted when there is a strong connection in commercial interest between different States, but it will never be granted for the opening of such branches in the City of Mexico or in the Federal District. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.
