The Carrancistas throughout Mexico

The Carrancistas throughout Mexico Mexico City

After the Convention evacuated Mexico City on 26 January 1915, Obregón entered the capital, though without any goodwill on the part of its inhabitants. Obregón had qualms about the turmoil that nullifying the Convention’s currency would cause (it was estimated that 80% of the notes in circulation in Mexico City were dos caritas{footnote}El Dictamen, 6 February 1915{/footnote}) and the next day the authorities announced that the Villista currency would remain of forced circulation while the new government considered the best means of unifying the currency. Colonel Gustavo Pérez Figueroa, the Inspector General de Policía, on hearing that businesses were refusing to accept sábana s , ordered his Comisarías to enforce them{footnote} El Sol , 29 January 1915. La Opinión , on 30 January 1915, reported that all notes were of obligatory circulation, just as Obregón was changing his mind.{/footnote}.

However, in a change of heart the next day, 30 January, Obregón ordered Coronel Jefe de Estado Mayor, F. R. Serrano, immediately to prohibit the circulation of Villista notes. The order was passed on to the Presidente del Ayuntamiento, Inspector General de Policía and other officials, and notices appeared on Sunday, 1 February.

Needless to say, the result was chaos. Merchants were reluctant to accept the Constitutionalist notes, because there could possibly be a resurgence of Conventionist forces which would render them worthless. A number of commercial houses advertised that they were still accepting the Villista currency in spite of Obregón’s decree. This prompted the military government to send troops to force these merchants at gunpoint to open their safes and in turn all Conventionist currency discovered was confiscated. Many grocers refused to accept the Constitutionalist money, and a number of them closed their shops preferring to hold on to their commodities until the hoped for return of the Conventionist Government. These were forced to reopen at gunpoint.

On 4 February a large crowd gathered outside the Palacio Nacional waving their now worthless notes and a commission composed of L. J. Tenorio, Amado Fernández, Francisco Chevannier and others sent an urgent telegram to Carranza asking him to reconsider because of the threat of hunger{footnote}El Dictamen, 6 February 1915{/footnote}. Because of the difficulties the

1 / 13

The Carrancistas throughout Mexico

prohibition had caused, on 4 February Obregón rescinded his order and agreed that Villista notes could circulate until such time as Carranza resolved the matter. The Ayuntamiento immediately gave Obregón’s change of heart as much publicity as possible{footnote}AAM, Hacienda General, volumen 2116, exp 743{/footnote}. However, the very same day, as soon as Obregón informed Carranza, in Veracruz, of his action, the latter replied that he could not authorise such a measure, and that if Obregón could not rely on the poorer classes he should abandon Mexico City. Then the rich, and those businesses interested in supporting the Villista currency, could sort out the problems. Carranza ordered Obregón to suspend his order or withdraw it, if he had already issued it{footnote} El Demócrata , Veracruz, 6 February 1915{/footnote}.

Carranza said nullifying Villista currency was a “war measure that, if not taken at this time, would cost us very dearly, while if taken now would completely debilitate our enemy. With this measure we kill Villa economically, as his paper will be worthless. … The only result of delay would be that businesses would offload the Villista notes that they hold onto the general public". Cabrera added that the prohibition would destroy Villa’s papers in the places that the Carrancistas had yet to take and in the United States. He argued that in these places the Villista money was in the hands of big businesses and the banks who would be affected, not the poor. Finally in those places prices for goods purchased with Villistsa paper would rise, and Villa would be unable to change his paper currency for bank notes or metalic currency{footnote}telegram Cabrera to Obregón, 4 February 1915, in Discusión de la credencial del diputado don Luis Cabrera y documentos justificativos, XXVII  Legislatura , México, 1917{/footnote}. As municipal employees had been paid in the now worthless currency the previous day, there were many complaints and requests to change their money. On 6 February 1915 the Jefe de Hacienda agreed to change up to 50%.

On 10 February 1915 the Cámara de Comercio in Mexico City announced, by means of posters and press releases, that the difficulties caused by the prohibition of the paper currency that the Villistas had left behind had been solved{footnote}Prensa, 11 February 1915{/footnote}. On 25 February 1915 the Carranza agency in Washington, D. C. announced that Obregón had been ordered to permit the limited exchange of Chihuahua currency for legal tender in Mexico City. This action was taken to relieve the monetary situation with particular reference to the poorer classes{footnote} Albuquerque Journal , 26 February 1915: New York Times , 26 February 1915{/footnote}.

2 / 13

The Carrancistas throughout Mexico

Obregón found himself unable to hold the capital and he finally left on 11 March. Shortly after, the Zapatista forces entered to an ecstatic welcome.

On 30 March it was reported that the dos caritas were circulating without any difficulty, though El Radical tended to be a ‘good news’ newspaper{footnote} El Radical , 30 March 1915{/footnote}. On 26 April, on hearing rumours that Villa has been defeated by Obregón, businesses began to refuse not only the sábanas but also the dos caritas {footnote} El Radical , 26 April 1915{/footnote}.

Pablo González and his Constitutionalists recaptured Mexico City on 11 July. Four days later (the delay led some to hope that González would not nullify the Villista currency{footnote}In fact González wrote to Carranza from Guadalupe, Hidalgo, on 12 July that as the Villista notes were the only money in circulation in Mexico City he felt that they should be allowed but he was waiting for Carranza’s response (      ){/footnote} and all the time speculators (coyotes) were buying Villista currency in anticipation of a return), he decreed the legal and forced circulation of the Constitutionalist paper currency and at the same time declared null and void the sábanas and dos caritas . On 17 July González and his troops left Mexico City rather hurriedly following a strike at the capital by enemy troops. The result was chaos again. From 26 to 30 July the Zapatistas occupied the capital in an erratic fashion but the Constitutionalists finally retook it on 2 August. On 7 September González decreed that businesses that refused Constitutionalist paper money or speculated in basic necessities or any type of paper currency, would be treated as enemies{footnote} Prensa , 9 September 1915{/footnote}.

On 2 November it was reported that around 17 people had been executed in Mexico City for possessing dos caritas{footnote}Prensa, 2 November 1915{/footnote}. On 6 November the Comisión Reguladora e Inspectora de Instituciones de Crédito

3 / 13

The Carrancistas throughout Mexico

agreed to collect any dos caritas or revalidados altos that the banks in the capital were holding in their vaults, as in spite of being declared null and void they were being used for speculation. The notes were to be burnt. On 9 November inspectors visited the various banks. The majority of managers acquiesced and the threat of force persuaded the others. Around $500,000 in notes was collected, though some banks, especially the Banco Nacional de México, had already handed in large quantities of revalidados altos to the Tesorería General de la Nación{footnote} El Demócrata , 10 November 1915; El Pueblo , 10 November 1915. A few months later, on 6 March 1916, R. Nieto, subsecretary of finance, empowered Luis G. Patiño, provost general (Preboste General del Cuerpo de Ejército de Oriente) to check all the strongboxes in various banks and collect all the revalidados altos and dos caritas he might find. Patiño issued a notice, advising holders of strongboxes in the Banco de Londres y México and the Banco Internacional e Hipotecario to report to the banks within three days. All three banks (Banco de Londres y México, Banco Internacional e Hipotecario and Banco Nacional) said Patiño carried out his searches with consideration and correctness (APGG, ){/footnote}.

Elsewhere, as the Carranzistas advanced into Villista territory they published and enforced decrees outlawing their enemies’ currency. However, such decrees often mirror the confusion over what actually was legal tender. Occasionally commanders had to allow Villista currency for want of an alternative. In addition, poor communications, lack of newsprint or lack of space meant that notices from central government were often printed in the states’ official bulletins several months late. Some had been superseded by the time they were printed.

Hidalgo From 13 February 1915 the two Chihuahuan issues were declared worthless in Hidalgo. Various mining companies were allowed to issue vales to provide the necessary small change, whilst offices were set up to exchange the notes{footnote} Periódico Oficial

4 / 13

The Carrancistas throughout Mexico

, 16 February 1915{/footnote}.

Estado de México In March 1915 as soon as the newspaper in Mexico City reported that the Villista notes were no longer in circulation they reappeared in Toluca in large quantities, particularly the $50 and $100 values{footnote}Gaceta del Gobierno, 24 March 1915{/footnote}

On 14 October 1915 the Zapatistas evacuated Toluca and it was taken over by Carrancistas, under General Alejo G. González. On the next day, González declared invalid all the notes issued by enemy factions with only the Veracruz notes as legal tender.

Querétaro Obregón named José Siurob Interim Governor and Comandante Militar of Querétaro on 2 April 1915. On 19 April Siurob published Carranza’s decree of 8 December but added various explanatory notes, including that the notes that were of no value were "all those that had a Villista origin and any others that had not been or were not issued by the Primera Jefatura, or had not been authorised by it". In turn all the notes of the Gobierno Constitucionalista, including those of the Gobierno Provisional revalidated by the Convention, were of forced circulation{footnote} La Sombra de Arteaga {/footnote}. However, d os caritas continued to circulate and on 11 May the new Governor and Comandante Militar, Federico Montes, had to remind the public that they were strictly prohibited and that any infraction would be severely punished{footnote} La Sombra de Arteaga , 12 June 1915. In May 1915 the El Hercules company had been fined $5,000 for accepting dos caritas which were forbidden by Carranza's decree of 8 December and refusing Gobierno Provisional. The company wanted the dos caritas (and Ejército Constitucionalista notes) to pay $1.5 million to a Torreón firm for a consignment of cotton (AQ, sección segunda, exp. 187){/footnote}.

Soon after, Villistas recaptured the city, and on 18 July anyone who refused the dos caritas, or the 25 centavos and one peso

5 / 13

The Carrancistas throughout Mexico

sábanas was threatened with a fine{footnote} La Sombra de Arteaga , 24 July 1915. In reply to separate enquiries the Presidentes Municipales of Vizaran, Tolimán, Huimilpán were told to accept dos caritas and 25c and 50c sábanas until new orders were received (AQ, sección segunda,  exp. 204, telegrams 22 July 1915){/footnote}. Montes soon returned and on 3 August he declared all the Villista decrees invalid and reinstated the Carranzista legislation{footnote} La Sombra de Arteaga , 7 August 1915{/footnote}.

In August 1915 an Alfonso Camacho appeared at the home of Juan Garcia, in Santa María del Pueblito, and said that he was going into the sierra and needed some Villista currency, which was all that was accepted there. Garcia saw this as an opportunity to get rid of some useless paper and collected 996 pesos. The next day Camacho changed his tone and pretended to confiscate the money as its possession was illegal. Garcia realized that he had been tricked, since although the Villista currency was not legal tender, there was no intention of decommissioning it{footnote}La Opinion, Querétaro, 22 August 1915{/footnote}.

In a telegram to the Governor of Querétaro dated 18 September 1915 the Secretaría de Hacienda mentioned that the Ejército Constitucionalista notes were of forced circulation{footnote}{/footnote}. On 24 November the Presidente Municipal of Huimilpán was asking which notes were obligatory since there had recently been some alarm over the Ejército Constitucionalista and Veracruz Gobierno Provisional: the Presidente Municipal of Tolimán made the same request the next day, and was told, among others, the $1, $5, $10, $20, $50 and $100 (sic) of Ejército Constitucionalista{footnote}AQ, sección segunda, exp. 326{/footnote}. This is probably because he included the Monclova issue though they had supposedly been withdrawn by this date, but the same error appears elsewhere. For instance, the Presidente Municipal of Querétaro, Alfonso M. Camano, issued a notice in November 1915 that listed, among the notes that were legal tender and consequently of forced circulation, "the notes issued in Chihuahua on 30 March 1914 in denominations of one, five, ten, twenty, fifty and one hundred pesos". On 30 November the Presidente Municipal of Tequisquiapán reported that businessmen had begun to refuse Constitucionalista notes{footnote}AQ, sección segunda, exp. 328{/footnote}.

On 24 December the Governor Montes had to warn commerce that the Ejército Constitucionalista notes were of forced circulation. Several months later, on

6 / 13

The Carrancistas throughout Mexico

1 April 1916 he suspended the revalidating of notes but again reminded the publc that, according to Carranza's circular núm . 48 , Ejército Constitucionalista notes were of compulsory circulation, even if they lacked a revalidation. On 7 June Montes had to threaten people who were refusing to accept $5 and $10 notes.

Zacatecas The Secretaría de Hacienda’s telegram of 19 August 1915 tolerating the Ejército Constitucionalista notes was published by Governor Rómulo Figueroa in Zacatecas on 21 August.

Guanajuato The Villistas abandoned Guanajuato during the night of 18 April 1915 and the next day businesses began to refuse to accept their currency to the great hardship of the lower classes. On 20 April the Presidente Municipal J. Paz López tried to enforce their acceptance to no avail. The Carrancistas led by General Alejo González arrived on 25 April, followed by Obregón himself on 28 April. Obregón immediately nullified all Villista paper money {footnote}Crispín Espinosa, Efemeride s Guanajuatenses , Guanajuato, 1920{/footnote}. The Villista general Panfilo Natera recaptured the town on 6 June but wisely declared that all notes, whether Villista or Carrancista, would be of forced circulation and acceptance at par. The Villistas only held the town for six days.

In a telegram to the Presidente Municipal of Guanajuato, dated 28 December, the Secretaria de Hacienda reported that Veracruz and Ejército Constitucionalista notes were being restamped in Veracruz and Mexico but were of forced circulation, even if they lacked the resello. There was a similar dispo sition about unrevalidated notes in Léon on 17 March 1916.

Michoacán When the Carrancistas captured Morelia in April 1915 they published in the Periódico Oficial O

7 / 13

The Carrancistas throughout Mexico

bregón’s decree (dated 5 April 1915) from Celaya, Guanajuato, nullifying Villa’s acts and invalidating the paper money of Villa, the Convention and its supporters{footnote} Periódico Oficial, 29 April 1915{/footnote}.

On 29 December a circular ( núm . 6 ) from the Secretario General de Gobierno of Michoacán to the Presidentes Municipales repeated circular núm . 48 ’s disposition that certain notes continued to be of compulsory circulation, even if they were missing the necessary resello , and that people who refused them would be punished{footnote} Periódico Oficial , 6 January 1916{/footnote}.

Coahuila On 15 February 1914 General Pablo González, at Matamoros, had declared the Constitutionalist paper money of forced circulation throughout Coahuila, Nuevo León and Tamaulipas{footnote} Periódico Oficial , Tamaulipas,  18 February 1914; Fort Worth Star-Telegram , 22 February 1914{/footnote}.

Nuevo León Originally General Pablo González supported the earlier Constitutionalist currency. On 18 June 1914 from his headquarters in Monterrey he decreed , in view of the difficulties which the refusal to accept some issues was causing, that (a)  all the Ejército Constitucionalista and Monclova issues were forced; (b) the Ejército Constitucionalista notes that were considered counterfeit because they had a fo ndo blanco in the central vignette were in fact genuine; (c) the dos caritas were valid tender and forced; (d) infractors would be punished with a fine or imprisonment{footnote}Periódico Oficial, Tamauli pas, 24 June 1914){/footnote}. The dos caritas were very popular in Monterrey, in spite of the restrictions imposed by Carranza’s decrees, but in December 1914 people in Monterrey and Saltillo began to refuse

8 / 13

The Carrancistas throughout Mexico

them{footnote} Prensa, 6 December 1914{/footnote}. Because the public were unhappy with the disposition that Chihuahua notes were invalid, the governor and comandante militar of Nuevo León, Antonio I. Villarreal, , felt compelled to issue a 'decree' that the disposition of 4 June 1914, by which the Chihuahua money was made obligatory, remained in force. He thus contradicted Carranza’s recent decree{footnote} Prensa , 16 December 1914{/footnote}. When the Villistas left Monterrey in May 1915 their money rapidly depreciated to nothing. One businessman papered his room with thousands of the now worthless notes{footnote}José P. Saldaña, Episodios Contemporáneos, Monterrey, 1955{/footnote}. Idelfonso V. Vázquez took over as interim governor on 29 May and on 3 June decre ed th at Chihuahua issues were prohibited from that date{footnote}ANL, Fondo Leyes, Decretos y Circulares, Colecciones de Circulares, Año 1915-1919, caja 7{/footnote}.

In June 1915 the Carrancista General Luis Caballero captured $650,000 in dos caritas from a pay train at Huertas, between Ciudad Victoria and Monterrey, and sent it to the Carrancista consulate in El Paso. The Villa authorities in Ciudad Juárez declared that it was all counterfeit but Carranza representatives pointed out that it was part of a large sum that has been used in paying Villa troops and that it must therefore be genuine{footnote} El Paso Herald , 2 June 1915: Prensa , 5 June 1915{/footnote}.

In Monterrey the new government issued a circular ( núm . 4 ) on 22 June 1915 that all Constitutionalist notes were valid, with certain being of forced circulation. Others would be exchanged, whilst the notes of the Estado de Sonora, the dos caritas , the sábanas and in general all Villista issues were null and void{footnote} Periódico Oficial , 21 July 1915{/footnote}. Carranza’s decree of 27 November 1914 was published in the Periódico Oficial of 17 July 1915, and his decree of 8 Decembe r in the next issue, 21 July.

9 / 13

The Carrancistas throughout Mexico

In Monterrey on 27 August General Jacinto B. Treviño, warned the public to accept the Ejército Constitucionalista notes. Strangely, he mentioned only the $5, $10 and $20 values{footnote} El Democrata , Monterrey, 29 August 1915{/footnote} though a memorandum on counterfeits issued three days later{footnote}{/footnote} included the $1 so this was probably an oversight. On 30 September Nieto sent a telegram to Abel A. Lozano, the Jefe de Hacienda in Monterrey, stating that the only legal currencies were the Ejército Constitucionalista and the Veracruz notes{footnote}{/footnote}. On 2 October 1915 El Democrata in Monterrey reporting that there had been some unjustifiable alarm in the city reminded its readers that the Ejército Constitucionalista were compulsory tender even if they had not been restamped{footnote} El Demócrata , Monterrey, 2 October 1915{/footnote}.

Tamaulipas On 12 June 1914 General Brigadier Luis Caballero, governor of Tamaulipas, decreed that of the Chihuahua issues only the dos caritas were of forced circulation . At the end of the year, on 9 December he declared the notes of the states of Sonora and Chihuahua null and void. On 14 June 1915 Caballero reported, in his circular no. 48, that Carranza had prohibited the paper money of Villa and Gutiérrez (revalidados) and ordered the Presidentes Municipales to decommission them. Thus, on 16 June, in Matamoros,  Pedro A. Chapa, Jefe de las Armas, published a telegram he had received from Caballero, in Monterrey, that from 9 June, by order of Carranza, all Villista and Gutiérrista issues were invalid, and those in Matamoros should be collected and sent to the Comandancia de la 5ª. División del Noreste. Some people were still using Villista notes{footnote} Prensa, 19 June 1915{/footnote}. However, the next week the Jefatura de la Línea Fronteriza de Tamaulipas announced that, by disposition of Governor Caballero, revalidated notes (los billetes constitucionalistas que hayan sido revalidados por las autoridades convencionalistas por decreto de 17 de Diciembre de 1914 ), would be of forced circulation, so public offices and individuals could get back the notes that had been previously been collected as being worthless. The Presidente Municipal of Matamoros, Conrado Gutiérrez, published a message from Cabellero that stated: “in view of a new disposition of the Primer Jefe, notes issued by our government and revalidated by Gutiérrez are again of forced circulation”{footnote} Prensa

10 / 13

The Carrancistas throughout Mexico

, 27 June 1915{/footnote}. In September 1915 Procopio Elizondo, Jefe de las Armas in Matamoros, issued a circular that, by order of General Jacinto Treviño, notes issued in Chihuahua on 14 March 1914, and Veracruz Gobierno Provisional notes were of forced circulation{footnote}Prensa, 4 September 1915{/footnote}. On 5 September the Jefe de la Línea Fronteriza, General Emiliano P. Nafarrete, in Matamoros, threatened to punish businesses that refused to accept $10 and $20 Carrancista notes, which had previously been withdrawn because of the number of counterfeits. Despite Elizondo’s circular, businesses had continued to refuse to accept these notes{footnote} Prensa , 8 September 1915{/footnote}.

Veracruz On 3 December 1914 a local newspaper reported that the Junta de Administración Civil had advised the public that the dos caritas were of forced circulation, but this was immediately corrected, as Carranza’s decree of 27 November was still in force{footnote} El Dictamen , 3 December 1914{/footnote}.

San Luis Potosí Circular núm . 48 was published in San Luis Potosí on 15 December 1915. On 27 December Carranza ordered the Governor of San Luis Potosí to remind the public that the Ejercito Constitucionalista notes were still of forced circulation: the subsequent decree was published on 10 January 1916.

Durango The Carranzistas captured Durango on [           ] and the decrees of 27 November and 8 December and circular núm. 48 were published in the Periódico Oficial of 26 December 1915.

Jalisco

11 / 13

The Carrancistas throughout Mexico

On 15 December the Jefe de Hacienda in Guadalajara, Gabriel Vargas, following a multitude of complaints that people were refusing to accept the Ejército Constitucionalista if they were not restamped, reminded the public that circular núm . 48 made them of forced circulation, even if they lacked the requisite resello{footn ote} B oletin Militar , 17 December 1915{/footnote}. The next week, following disquiet about the last circular on Chihuahua notes, he had to repeat the message{footnote} Boletin Militar , 31 December 1915{/footnote}. The Jefatura de Hacienda in Guadalajara accepted the Chihuahua notes that Carranza had authorised ( los del Estado de Chihuahua de la emisión que autorizó el C. Primer Jefe del Ejército Constitucionalista don Venustiano Carranza ) for later reimbursement until 31 December 1915{footnote} Boletin Militar , 31 December 1915{/footnote}. On 30 December Vargas had to confirm that the Ejército Constitucionalista were valid and of forced circulation.

Thus at the end of 1915 Carranza was still in theory acknowledging his government’s obligation on certain Chihuahua notes. Such notes when handed in may have been stamped in acknowledgement and this may explain some ‘Jefatura de Hacienda’ and ‘Administración de Timbre’ resellos.

Carranza later proroged the period for depositing notes and on 16 February 1916 the Jefatura de Hacienda in Guadalajara advised people that the office would stay open until new instructions were received{footnote} Boletin Militar, 16 February 1916{/footnote}.

Sinaloa On 25 December 1914 the General Jefe of the third Division of the Northwest, R. V. Iturbide, in Mazatlán, acknowledged Carranza’s decree of 27 November but reported that it would cause difficulty for his region, isolated and without resources, to declare the Estado de Chihuahua notes null and void. A handwritten note on the letter notes Carranza’s reply that Iturbide should not allow Villista notes to circulate, or change them for Constitutionalist notes, Carranza showing less determination than he did later with Obregón in Mexico City{footnote}CONDUMEX, Fondo XXI, carpeta 23, leg. 2257{/footnote}.

12 / 13

The Carrancistas throughout Mexico

Circular núm . 48 was published in Sinaloa on 28 December 1915{footnote}Periódico Oficial, 28 December 1915{/footnote}.

Tepic On 23 December  1915 Subsecretario de Hacienda Rafael Nieto reminded the Administrador de Rentas, A. G. Guzmán,  that according to circular núm . 48 holders of sábanas and dos caritas , among others, had to hand them in to the Jefatura de Hacienda or Administracion Principal de Timbre in exchange for a receipt.  On 19 January 1916 Guzmán told Mexico City that they had not yet received copies of the circular and therefore holders had missed the deadline of 31 December. On 22 January Nieto extended the deadline to 31 January, but on 29 January Guzmán asked for a further extension until the end of February, which was agreed by the Secretario de Hacienda, Luis Cabrera, on 2 February{footnote} El Bien Público , 5 February 1916{/footnote}.

Sonora By September 1915 the Jefatura de Hacienda in Sonora still had not received enough funds to change the old Gobierno Provisional and Ejército Constitucionalista notes and told the public that they were still legal tender{footnote} Periódico Oficial , 22 January 1916{/footnote}.

Baja California In La Paz the period given in the circular núm . 48 for handing in Chihuahua notes was proroged until February 1916.

13 / 13