MEXICO: Fantastic Banknotes

Effective last week the Mexican Treasury announced that banknotes issued by defunct Mexican banks are now officially "valueless," no longer legal tender.

Informally the Treasury "advised" holders of such paper that they can sell it at a heavy discount through the Mexican Bank Liquidation Commission.

Holders of banknotes issued by any of the 160-odd National Banks which failed last year have not lost, cannot lose a cent. Under U. S. banking law no banknote can be issued until its full value is covered by bonds which bear the circulation privilege deposited with the...

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