File No. 812.516/170
Ambassador Fletcher
to the Secretary of State
No. 80
American Embassy,
Mexico City,
April 19, 1917.
Sir: I have the honor to enclose text and
translation of a decree providing for administrative liquidation of
banks, issued April 6, 1917 by First Chief Carranza of the
Constitutionalist Army.
[Page 1010]
For the information of the Department, Article 5 of the Decree of
December 14, 1916 which is modified by the enclosed decree is translated
as follows:
If the report of the Board of Receivers shows that the bank
cannot cover its liabilities with its assets, the Secretary of
the Treasury will order its judicial liquidation in accordance
with the Decree of September 15 referred to (1916).
The decree enclosed has not yet been published in the Diario Oficial and the text was copied from a local paper.
I have [etc.]
[Inclosure—Translation]
decree dated april 6, 1917, modifying article 5
of decree of december 14, 1916
Venustiano Carranza, First Chief of the Constitutionalist Army, in
charge of the Executive Power of the Nation, in the exercise of the
faculties with which I am invested, and whereas
- I.
- The banking institutions which according to the decree of
December 14, 1916, should be put in liquidation are at the
present time in an undefined situation because, for the
reason that it is difficult to arrive at an appreciation of
values due to the recentness of the reestablishment of
metallic circulation, it is impossible in a short period to
determine upon judicial liquidation;
- II.
- The operations of the Boards of Receivers offer continual
difficulties in the way of an exact determination of the
condition of the institutions of credit which is essential
to the definite decision of the manner of
liquidation.
- III.
- The continuation of such a state of affairs is prejudicial
to the interested parties and makes difficult the
realization of the banking precepts contained in the
Constitution of the Republic which shall take effect on May
1, 1917, therefore
I have seen fit to decree the following:
Article 5 of the Decree of December 14, 1916 is modified as
follows:
All banks which in accordance with Article 7 of the Decree of
December 14, 1916 are declared in a state of liquidation shall be
administratively liquidated. The Executive will prescribe the
regulations necessary to avoid, in making such liquidations,
disturbances of a general nature, private damage and loss of time.
If during the liquidation it should appear that any bank cannot
cover its liabilities with its assets, the Ministry of Hacienda may
bring the matter before the ordinary judicial authorities to the end
that the procedure may take its course in the courts in accordance
with the legislation relative to bankruptcy.
The Ministry of Hacienda, in case that criminal acts are proven, will
consign the responsible parties to the appropriate criminal
authorities.
Therefore, I order that it be printed, published, circulated and
given due compliance.
Constitution and Reforms
Given in the City of Mexico the 6th day of April, 1917.