File No. 812.516/206
The French Ambassador ( Jusserand) to the Secretary of State
My Government brings to my notice the jeopardy in which it thinks that foreign capital invested in Mexico is put by the bill providing for the creation, under the name of Bank of the Mexican Republic, of the one bank of issue contemplated by the last Carrancista Constitution.
Article 10 of the bill provides, in its last part, that joint stock companies shall deposit in the said bank the reserves that they are obliged to have in coin.
On account of the large number of such companies doing business in Mexico, the deposit would make up a large sum consisting almost exclusively of foreign capital which would thus be placed at the uncheckable disposal of the Mexican Government. The attitude assumed by it toward foreign funds justifies a fear that the provision under consideration is but hiding Mr. Carranza’s desire to secure by that means funds for current expenses which he could only obtain heretofore through the ordinary course of a loan, or even his intention purely and simply to appropriate to his own use the said revenues at some time or other.
The Government of the Republic has made its fears known to its representative in Mexico and directed him to consider with his colleagues concerned the advisability of making to the Mexican Government the joint representations that such a measure warrants.
In compliance with my Government’s instructions I have the honor to bring the foregoing to your excellency’s knowledge and to beg you kindly to let me know whether you would not be disposed to have these views and what measures the Federal Government would be willing to take to meet the above-mentioned awkward situation.
Be pleased to accept [etc.]