Editing Bank of Mexico (section)

=== Revolution ===

In 1911 [[Francisco I. Madero]] took power from Díaz. Madero worked to increase the number of banks in the country<ref name=":3" /> but he was not trusted by the United States which worked with one of Madero's generals, [[Victoriano Huerta]], to overthrow him in February 1913. When Huerta took power in 1913, he confiscated all of the metal backed banknotes from private issuing banks then issued unbacked banknotes into circulation, crippling the national banking system.<ref name=":1" />

When Huerta was forced from office, the number of banknotes issued multiplied and the population began to lose faith in paper money. As warlords ravaged the country vying for control, they forced banks to make exorbitant loans or they looted them. In 1916 [[Venustiano Carranza]] declared that all banks must fully back their banknotes with metal. The 1897 law said that private banks only had to back 33% of the value of their issued notes, consequently all of the private banks were dissolved and their assets seized. That same year Carranza issued his own "unforgeable" notes in May though these lost all value by July of the same year. The banks seized by Carranza weren't returned to their owners until the administration of [[Álvaro Obregón]] in 1921.<ref name=":1" /><ref name=":3" />