The aftermath of the revolution
The revolution had a profound effect on people’s trust in paper currency and banking institutions.
In 1916 it was reported that the only money in circulation in the neighbourhood of Cusihuiriachic, besides the worthless Carranza currency, were the cheques that the Cusi Mining Company paid to their employees and for local purchases. These were drawn on a bank in El Paso in American dollars1.
Firms offering banking facilities
It took time, after the revolution, for Mexico to re-establish its financial infrastructure and in the meantime various firms appeared to carry out the most elementary banking functions. In Chihuahua the leading enterprises were:
David S. Russek y Cia.: this commenced trading on 28 September 1919 and acquired offices in Chihuahua2, Ciudad Juárez3, Parral, San Antonio, San Andres (Cuauhtemoc) and Mexico City. In 1920 it merged with the Casa Bancaria Caballero y Maciás. On 30 January 1921 it merged with the Casa Bancaria Rafael Calderon and, in the same year, with the Compañía Bancaria y de Inversiones de Ciudad Juaréz. It closed its doors on 9 December 1923, either because of the large investments it had made in the construction of the projected railway to Santa Clara or because it lost its liquid capital during the abortive uprising of de la Huerta. Its owner and manager, David S. Russek, used not only the bank's capital but also his own personal fortune to cover its debts.
The Chihuahua Investment Company: this was founded by Tomás and William Dale, who had come to Chihuahua in 1884. It was incorporated in 1902 to take over the interests they already operated as Dale Brothers and Co. For five years they had premises at the corner of avenida Independencia and calle Victoria but in 1908 they moved to new quarters at Aldama 1104. William was president and Tómas vice-president and treasurer.
William Dale died in the fire that destroyed the company's building on 4 November 19225.
In May 1927 the Secretaría de Hacienda gave the company a concession to operate as a banco refaccionario, as it was able to demonstrate that it had the $500,000 oro nacional required by the Ley de Instituciones de Crédito6. The change took place in November 19297.
The Casa Bancaria Eugenio Caballero: this concern, which opened in 1926, invested mainly in mining. It sought a judicial liquidation on 18 December 19318 and a moratorium on its debt. By 1935 it had paid all its debt plus the accrued interest.
Mines and Metals
Caja de Ahorros de don Elías Hernández
Casa Bancaria de Mariano Pacheco
Casa Bancaria Iriate Hermanos
Casa Bancaria Caballero y Macías
Casa Bancaria Rafael Calderón: This merged with Russek on 30 January 1921.
La Compañía Bancaria y de Inversiones de Ciudad Juaréz (Juarez Banking and Investment Company): this was advertised in 1920 as 'the only bank in Juarez'9 with capital and surplus of $100,000. Later it had a capital of $300,000. It merged with Russek in 1921.
All these businesses stopped operating once the new banking system was established.
Footnotes
1. The Effects of the Revolution in Mexico on American-Mexican Mining Interests. Memorandum submitted to the American-Mexican Commission, September 1916 [back]2. on calle Aldama and calle Independencia [back]
3. Elias Acosta was the manager: the branch was situated at avenida 16 de septiembre 111 [back]
4. Chihuahua Enterprise, 4 July 1908. They must have given up their premises to make space for the new Banco Minero offices [back]
5. El Paso Morning Times, 7 November 1922 [back]
6. Excelsior, 15 May 1927 [back]
7. El Universal, 3 November 1929 [back]
8. Excelsior. 19 December 1931 [back]
9. El Paso City Directory, 1920. Its offices were at 16 Comercio Street. Raymundo S. Garcia was president; Y. Rodarte, M. A. Tinoco and Isouro Carnerio vice-presidents; M. J. Rascon cashier and J. C. Torres assistant cashier [back]
