three classes: (1) banks of issue; (2) mortgage banks, which made loans on urban and rural properties and issued bonds secured by a similar guarantee; and (3) banks of promotion to encourage mining, agriculture, and industry. Under this law there were established, between 1897 and 1913, 32 banks of issue of which 20 were in existence in the latter year with assets amounting to $425,500,000. Mortgage banks also flourished. Four had been established by 1913 with assets then totaling $43,762,000. Banks of promotion had been created to the number of six which in 1913 had assets of $83,000,000.
In addition to these institutions, operating under the law of 1897, there were a loan bank for promoting agricultural and irrigation enterprises, six branches of foreign banks, a number of private banks, and a national pawn shop, which had some of the characteristics of a bank.
During the revolution this financial structure was torn down. The assets of $600,000,000 were wiped out, its reserves taken over, and the institutions finally declared insolvent. Since 1914 the country has been practically without banks as that term was used in the law of 1897. By an order of September 15, 1916, the government closed all the regular banks, A few private institutions have since been in operation but their activities have been confined practically to purchase of foreign exchange and minor commercial credit transactions.
What is to take the place of the former Mexican banking system is not yet clear. The Congress granted to the President power to establish a single bank of
