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Governor Venustiano Carranza of Coahuila, temporized telling Huerta that he had to study the constitutional ramifications of what had occurred before he could align himself with the new government. Scion of a wealthy landowning family and professional politician, he covertly began to borrow money and to organize a rebel government and army in his state. The wily Carranza was able to defer his pledge of allegiance to Huerta, but Huerta’s agents soon discovered what he was up to. Carranza was forced to declare himself and the State of Coahuila in rebellion against the usurper on March 4, 1913. |
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While he had been playing for time with Huerta’s representatives, Carranza was busily organizing a revolutionary government. On March 25th, he proclaimed his Plan de Guadalupe, a manifesto to the nation calling for the rejection of the Huerta government by force of arms. Subscribing to the plan were delegates from the states of Coahuila, Chihuahua and Sonora who had traveled to Coahuila to meet with Carranza. The Plan de Guadalupe had several interesting feature aside from the call to arms. It established the Gobierno Constitucionalista de México (Constitutional-ist Government of Mexico) and the Ejército Constitucionalista de México (Constitutionalist Army of Mexico). The arrogant and ambitious old politician went on to name himself Primer Jefe (First Chief) of both the government and the army. Carranza’s self-appointment without consultation with other revolutionary leaders caused immediate suspicions of the man and his ambition. Nevertheless, he was accepted as First Chief of the movement.
The delegates of the various states returned to their homes and began to organize for integration of local forces into Carranza’s Constitutionalist government and army. Carranza immediately began to issue decrees concerning the conduct of the revolution. He recalled into force the law of January 25, 1862, also known as the “Juárez law“. This law directed the execution of all enemies of Mexico. Carranza’s revolution would be a “take no prisoners” affair, and Carranza could eliminate political opponents “legally”.
President Huerta rightly viewed Coahuila as the seat of rebellion and sent a federal army to clear the state of rebels. While rebel forces enjoyed success in most areas of northern Mexico, the federales relentlessly hammered the Coahilan rebels, driving them from the state. Yet, in spite of federal success in Coahuila, the rebellion continued to spread. The Rural Mounted Corps had always served as an auxiliary to the federal army in times of need. Francisco Madero’s probably inadvertent foresight in filling the ranks of the rurales with his veterans effectively removed them as reinforcements for the federales. Rurales in the states of Chihuahua, Guerrero, México, Michoacán, Sinaloa, Sonora, and Tamaulipas deserted Huerta en masse in favor of the Constitutionalists.
The expenses of the rebellion were enormous on both sides. President Huerta instituted a series of “forced loans” from the banks of Mexico which further damaged their stability. “Good Money” in the form of coins and bank notes backed by bullion reserves seemed to disappear from circulation overnight. First Chief Carranza was forced to provide his own money and did so by convincing the legislature of the State of Coahuila to underwrite and issue of 5 million pesos in the name of the Gobierno Constitucionalista de México. The notes were issued at Monclova, Coahuila, on May 28, 1913, in denominations of 1, 5, 10, 20, 50, and 100 pesos. |
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It was Carranza’s intention to control the expenditures of the revolution by controlling the money issued to pay for it. The initial issue was backed by the resources of the State of Coahuila, but proved to be totally inadequate.
By June, circulating coinage and paper was in such short supply that President Huerta was forced to authorize certain corporations to issue scrip to their workers. Most were in a format similar to that shown below. |
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The major problem with scrip issues was that they were accepted only among the workers and in the company stores of the issuers. “Outside” businesses generally refused to accept them. The circulating currency situation continued to deteriorate. During 1913, the Casa de Moneda produced just over 8.5 million pesos in coinage, almost all of it in silver. Although this amount was double the coinage issued for both 1911 and 1912, it too disappeared into bank vaults and personal and corporate hoards as soon as it was issued.
Carranza’s emissaries were quite successful in gathering adherents to the Plan de Guadalupe among the cabecillas of northern and central Mexico. The Constitutionalist Army now boasted the forces of Sonora under Obregón, those of Chihuahua under Constitutionalist Governor Manuel Chao and General Francisco Villa, and those of Coahuila under General Jesús Carranza. |
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In the State of Sinaloa two revolutionary leaders who were not yet formally attached to the Constitutionalist cause faced a pressing need for circulating currency. In June, 1913, Generals Rafael Buelna and Juan Carrasco authorized the coining of silver pesos to alleviate the local shortage. Without minting facilities, it was necessary to use the ancient method of sand-casting. An issued federal 8-reales or 1-peso was pressed into damp sand to make a mold. Once the mold was prepared, molten silver was poured into it producing a very ugly coin. General Buelna’s issue was 20,000 pesos, but it was soon discovered that the raw silver from the mines of Culiacán, Sonora, contained enough gold that the one peso pieces were actually worth more than their face value. In September, General Juan Carrasco authorized a second issue of coins that were slightly reduced in weight to make up for their gold content. |
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General Rafael Buelna |
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General Juan Carrasco |
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The first coinage of the revolutionary forces, these extremely ugly but effective coins only circulated locally in southern Sonora and in the Territory of Tepic (Now the State of Nayarit). Coins were issued in denominations of 20 and 50 centavos, and 1 peso. |
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As the situation continued to deteriorate through the summer of 1913, decrees were issued by the governors of the states of Durango, Sinaloa, and Sonora for emergency currency to sustain commerce. In spite of his determination to control the finances of the revolution, Carranza posed no objections. His 5-million pesos could not possibly cover the costs of these three states and his Constitutionalist Army.. An example from Sonora is below. |
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Nothing that the Huerta government did could stop the hemorrhaging of the monetary system. In early August, President Huerta was forced to issue a decree allowing the “banks-of-issue” to emit notes of a value less than 5 pesos. The banks had been previously forbidden by law from issuing any such notes.
El Banco Peninsular Mexicano (The Mexican Peninsular Bank) of Merida, Yucatán, was the first to take advantage of President Huerta’s August decree and issued a 1 peso note. |
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The mines of Hidalgo del Parral produced abundant silver, but copper was in short supply. To provide the copper for the 2 centavos, General Chao ordered the electrical lines of the Parral-Santa Barbara trolley line taken down, and the copper wire converted into coining blanks.
In late September, General Francisco “Pancho” Villa and the newly formed Division of the North attacked and captured the city of Torreón, Coahuila after a several-days battle. Villa needed cash to pay his troops and suppliers, and to get the economy of the city back on track. He asked Carranza to send him 350,000 pesos of his paper money. Carranza sent only 50,000 pesos, telling Villa that the amount would have to suffice. Short 300,000 pesos, Villa demanded that the bankers of Torreón and its sister-city, Gómez Palacio, “cough-up” the money for a “loan“. The bankers were appalled, but soon came up with a scheme which satisfied both Villa and themselves. Each local branch bank issued checks against other local branch banks, payable at their home offices, once the railroad lines had been reopened to Mexico City. These checks were accepted locally as “legal tender”, and Villa’s immediate problems were solved. Carranza objected to Villa’s solution, but could do nothing about it. |
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In September 1913, at Hidalgo del Parral, Chihuahua, General Manuel Chao, a Carranza favorite, issued the first Chihuahua coins of the revolution. They were issued in denominations of 2 and 50 centavos and 1 peso. The legend Fuerzas Constitucionalistas (Constitutionalist Forces) appears on the 2 and 50 centavos pieces. The legend H. del Parral appears on the 1 peso. This coinage is often erroneously attributed to General Francisco “Pancho” Villa. |
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Having provided for the economic recovery of Torreón and Gómez Palacio, Villa departed with his division, leaving a garrison commanded by General Calixto Contreras to hold the cities. By mid-November, General Contreras was running short of funds, and ordered the production of paper money in denominations of 5 and 50 centavos and 1 peso. No longer careful of the feelings of the First Chief regarding the issue of money, this paper was issued under the name of the Ejército Constitucionalista – División del Norte (The Constitutionalist Army – Division of the North). |
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The Constitutionalist Movement 1913 - 1914 |