File No. 812.011/9


647. Article 28 of the new Constitution was approved yesterday. In effect it prohibits monopolies except coinage, mails, telegraphs, copyrights and patents and the issue of paper money by one sole bank [Page 947] controlled by the Government. Exception is also made for associations or societies which sell their products directly to foreign markets and do not deal in articles of prime necessity.

The enforcement of this article will work hardship on many industries such as smelters, foundries, etc., which have hitherto enjoyed certain privileges in way of exemption from taxation for a period of years and will probably result in withdrawal of considerable foreign capital. Although Article 14, already approved, states that no law shall be given retroactive effect there is a strong belief that this present article will be taken advantage of for the formation of laws in accordance with which retroactive judgments will be made.