August 3, 1952
By CLEOFAS CALLEROS
hat it never fails to pay its troops is perhaps one of the finest tributes that can be paid a nation. Spain qualifies unconditionally for the honor. For as long as history records, her men in arms, regardless of how far removed they might be from their homeland, have always been assured that some arrangement was made to meet the payroll. Perhaps he viceroy would settle financial disputes temporarily. Generally the provincial government of the kingdom would request that funds in lieu of the delayed gold and silver shipments be advanced, by the merchants and land-holders, to the troops’ families.
The Spanish and Mexican troops stationed at Provincia de Tejas outpost in 1822 were no exception. Late arrival of the specie, due usually to no means available for its transportation, presented pressing difficulties. The entire economy of the forts was stymied.
Consequently, Gov. Jose Felix Trespalacios, a colonel of the imperial armies of Mexico and the political chief of the Province of Tejas, conceived the idea of a national bank – Banco Nacional de Tejas – to be established by governmental decrees. Its notes would be guaranteed by specie; its officers would be the governor and three members of the City Council of San Antonio; there would be no stockholder, no capital put up, no charter defining the scope of this operations, except as the decree filled that function.
FORMED IN 1822
The bank came into existence on Oct. 21, 1822. Immediately a sufficient amount of currency was created and issued. Interestingly, the notes were “printed” by long hand. This taken itself was staggering. Four men were assigned to the task – Standard Bearer Nabor Villaroel, Ensign Sarazble, Corporal Garza, and Private Cepeda. But they came through with flying colors. According to a day book recently discovered in the University of Texas Archives by the eminent historian, Carlos E. Castaneda, the following bills were made in the following denominations and quantities:
Ten $100.00 (pesos), 10 - $50 (pesos), 50 - $20 (pesos), 100 - $5.00 (pesos), 600 - $1.00 (pesos), 600 – 4 reales (four bits or $0.50), 200 – 2 reales (two bits or $0.25), 100 – 1 real (one bit or $0.125).
These were the first bank notes, to the amount of 11,837 pesos and 4 reales to be issued by the first chartered bank west of the Mississippi River. Opposition from Mexico in the form of rival currency forced its doors closed in less than four months. However, the purpose had been served well.
FACS OBSCURED
S survey of early banking in Texas leads to an investigation of El Paso’ banking history. Few historical studies could prove more unsatisfactory. There is little of authority on which to base conclusions. It is plausible to assume, however, that at least some type of “exchange system” assisted her at a very early date. An enormous number of troops were quartered at both the Presidios of Ciudad Juarez and San Elizario. Some type of banking institution, regardless of how poorly organized, had to execute their affairs. We can only wonder what kind of bank it was.
Oldtimers in El Paso say that the first bank here was a “desk space affair” in the general store. There is a photograph, taken shortly before 1881 from approximately the present location of the Plaza Theater, which shows an old building bearing on it north side the sign, “Bank of El Paso.” The structure was the store, located on the site of the present Blumenthal Building.
No one knows who operated the bank, who was responsible for its establishment, or how long it remained in business. From this lack of knowledge other questions arise. How was business in those early days? What was the dollar worth then? Of one thing we can be sure. It was worth more than it is now!
Comments