BANKING. Banking is very profitable in Alex ivo, though the system is not yet well developed throughout the country. The great bank of the country is the National Batik of Mexico, estab lished in the City of Mexico in 1852 and having branches in all the principal cities. It has a monopoly for the issuing of bank notes. except ing that the same privilege is exercised by the Bank of London and Mexico. founded during the French intervention in Mexico, and by the inter national and IlypotIn.eary Bank of Mexico, or. as it is minimally called, the Mortgage Bank of Mexico. Both of these banks antedate the Na tional Bank, though both have since been reor ganized. A general banking law was adopted by t he .1Iexican Congress in 1590, establishing, the con ditions under which banking institutions may be organized; hut this law (1((((s not affect the National Bank or the other hank- in the capital that were chartered before the law was passed. In 1595 there were twelve banks in Mexico, three in the capital, four in Chihuahua City, two in Yucatan, and one each in Durango. Zacatecas. and Monterey, besides the numerous branches of the National Bank. The capital of the National Bank is $20.000.000. of the Bank of London and Mexico $15.000,000. and of the Alortgage Bank $5,000,000. The capital of the other banks ranges from $7.000.000 to $000. 000, and the deposits from about $22.000,000 in the National Bank and $9,000,000 in the Bank of London and Mexico to less than $100,000. The Central Bank, in the City of Mexico. acts as a clearing house for the provincial banks. Th. existing hanks are in a flourishing condition. The demand for increased banking. facilities is very large: new banks are being established and the old banks are extending their facilities in various directions. The National Bank, which began with a capital of $3,000,000 and now has a re.erve fund of $5,500.000. has in the past decade declared annual dividends ranging from 23 to 29 per cent. The declared dividends of the Bank of London and Mexico for seven years ranged from 10 to 20 per cent. When the stock of this bank was inereased from $5,000.000 to
$10,000,000. the $5.000,000 of new stock was subscribed more than four times over. The Na tional Batik is the fiscal agent of the Government and is owned almost exclusively by Mexicans.
Owing to the expense and (hangers of transpor tation, it was formerly difficult and hazardous to early money from one city to another. and CN change between the various cities was s(nnetimes as high a. 10 per cent. The building of railroads has reduced the rate. hut it is still high. It costs 1 per (TM. to draw money from the City of Mexico to the city of naxnea and vice versa. The exchange is much higher when money is sent to towns without banking facilities.
FixaNci:. Mexico still need. capital to de velop her and give employment to labor. A great deal of foreign capital is invested in the country, but much more will be required before the natnral 11,01111T1's are adequately developed. It wes not surprising that the finances of the country were in a very unsati.factory eondit ion so long its there were no railroads. little develop ment. and the country almo.t inee—antly suf fered from disturbed politic-al conditions. Mex. bt's credit fell very low in the money markets (hiring this period of her history. and it was not till peace and order became firmly established. after 1s77. tint her credit began to revive and that the revenues finally reached an amount suf firi,nt to pay the piddle expenses. It was 04(.111.
sibly for the purpose of protecting the interests of European holders of Mexican bonds that a combined force of French. English, and Spanish soldiers was sent to invade the country in 1$01. The English and Spanish soon withdrew: but (Emperor Napoleon proceeded to carry out his plan. now known to have been formed hebtre the invasion. of founding a Mexican empire nn der French protection, and :11aximi1ian ascended the throne in 1864 with assurances from France that it would help hint to establish his rule upon a tinn_hasis. The financial difficulties of Mexico were therefore the pretext for the intervention out of which arose the ill-starred empire of Maxi milian.