OCR Text |
Show MEXICANS 10 HAVE NATIONAL BANKS MONETARY COMMISSION TO BE ' CREATED TO SUPERVISE GOVERNMENT GOV-ERNMENT BANKS. Suspension of Two Banks of Mexico ' City Which Had Issued Bank Notes in Excess of Metallic Reserve Re-serve Hastens Plan. New London, Conn. A plan for a Mexican national banking system to take the place of the suspended national na-tional bank and the Liank of London and Mexico in .Mexico City was out-( out-( lined tr the American members of the joint Mexican-American commission commis-sion here Tuesday by Luis Cabrera, chairman of the Mexican members. Mr. Cabrera explained that a monetary mone-tary commission has been created that will have supervision of a chain of government banks and it is hoped to obtain backing, chiefly from Mexican Mex-ican sources, to support the scheme. This explanation was given after the American members had asked to be enlightened on the order suspending suspend-ing two banks in .Mexico City. Mr. Cabrera suid the two banks had issued is-sued bank notes far in excess of their metallic reserve, and recently had refused re-fused to sell to the government exchange ex-change on foreign banks at rates demanded de-manded by the government. The institutions in-stitutions had been ordered to show a metallic reserve equivalent to their issue of paper money, he said. Mr. Cabrera added that the step was largely retaliatory, as the banks of Mexico, chiefly the two in question, wi;re responsible for depreciation ol Carran.a currency. The border situation was discussed lu a casual way, but without much progress. |