Contributions Of The Kemmerer Mission To The Modernization Of The Ecuadorian Banking System

Contributions of the Kemmerer mission to the modernization of the Ecuadorian banking system

Introduction

The first source is "Kemmerer in Ecuador" where it is announced that there was a Latin American journey that included Ecuador since its monetary system was devalued considering the option of belonging to the Kemmerer mission;which recommended solutions for financial difficulties first of all the continent. The second source is "Central Bank of Ecuador Synthesis of its history" this presents that thanks to Kemmerer’s arrival in the country, the first Organic Law of the Central Bank of Ecuador is created so that I contribute to delineate a set of rules that, when applied when appliedallowed to modernize the country.

Kemmerer in Ecuador, is a historiographic source, since it was made 68 years after the subject to be discussed by Almeida Rebeca of the Master’s Degree in Andean, and its purpose was to inform the years of the modernization of the banking system of Ecuador;It was published in the year of 1994 in the city of Quito as the first edition in Flasco Headquarters Ecuador. In this book I carry out the dates of 1927 until 1932 with an ex -animation to the Central Bank of Ecuador who also evaluates it, they are carried out through the ordering and systematization of the main statistical indicators. This book is a reliable source;including that the person is authoritative of the subject;since it makes known in detail what was the Kemmerer mission in Ecuador;As a limitation it is shown that it is a source made after the event.

Central Bank of Ecuador Synthesis of its history, it was written by Zapater Iván who is related to the Numismatic Central Museum of Ecuador, since it presents itself as a historian. It is a historiographic source because it is a book that was published in the year of 2010 in Quito, that is, 84 years after what was the Kemmerer mission, its editorial was the Marshal. It tells a part of the history of the Central Bank of Ecuador related to this mission, with the purpose of clearly informing with respect to the years of modernization that occurred in the country and events that mark the mission.

His tendency is a political partner;and details clearly or objectively for understanding. It also has a value that lies in convincing that Kemmerer’s arrival had an important impact for the country, is valued because it is a book where a lot of objectivity is observed and is complete, therefore it is considered a reliable source for my research work;And this is how important limitations do not present.

Therefore these selected sources are very useful for my work, based on the fact that they are made to give a concise explanation;In addition, these treat with greater relevance and coherence to the Kemmerer mission in their native years of introduction to Ecuador.

Developing

Edwin Walter Kemmerer was known for being the most attached American in what was the economy that altered his nation and his neighboring countries;In this way he was known as a monetary doctor or advisor. Being considered promoter of monetary policy laws, he was interested in the problem of inflation through the implementation of balanced budgets and strong currencies. Through what was his work, it is there when the country enters to make an analysis, so that it is possible to keep in the gold pattern block;And do not imply eviction within Latin America countries with a good monetary system.

Kemmerer emphasizing this, he said in a common day “excellent thing is a good law, as well as a good administrative machine;But both will be worthless if there are no men of great capabilities responsible for executing them.”(Kemmerer, 2019)

So that the law is considered a tool that benefits the population or for more concrete groups;Like an administrative machine is a benefactor for the use of the people. In this way the law and an administrative machine are defenders for what is a group of people, taking into account that someone should be taken to be used and by that it works properly and effectively. This was very considered by Kemmerer and his years of experience in what was to help the damage of the modernization of each country in Latin America.

The missions that he made were presented truthfully before a problem that was exhibited with what was of monetary systems or referring to the subject before any country, taking into account that what was being of the missions he made in Ecuador andway that I help, “the author emphasizes that the different reforms and projects that were formulated as a result of the Julian revolution were prior to the coming of the Kemmerer mission, although his presence was necessary to put them into practice.”(Almeida, 1994, p. 20) In this way the Julian revolution stands out since President Isidro Ayora through this sought proposals for economic remodeling of the country.

“Indeed in October 1926, the contract is carried out so that the necessary study is done for the establishment of the Central Bank and a set of legal projects in monetary matters.”(Trujillo, 1984, p. 54)

This mission appeared that all politicians lived in a squeeze area through the events that were happening, being that hiring was made to modernize the State and restructure the country’s banking system. In addition, it was done to correct administrative offenses in the management of finance, it becoming something new for Ecuador to have the same economic level before the rest of the world of the world especially in Latin America.

"The council of Kemmerer Zanjo all doubt, all resistance tangs any obstacle and, more than anything, he blames the opposition vocinglery of a good part of the bankers who did not want to know of a central bank because, in the end, it affected their business interests"(Zapater, 2010, pages. 194-195)

Being that in this way it is shown that the bankers had a doubt of what would happen when creating the Central Bank, since they stipulated that the damage would be for them through the interests of keeping their money in the bank;knowing that some kept their money on their own, knowing that if the central bank could be done, but first of all it had to do an analysis.

“After a period of analysis of the situation, one of the first actions consisted of founding the Central Bank of Ecuador that, since then, was the only agency that legally issued tickets and coins.”(Eugenia Gozzi, 2010)

Starting from what was the Central Bank of Ecuador where everything has a beginning for what was the mission being that from this one the damage was noticeable from 1926 to 1931 where it was that Isidro Ayora withdrew from the presidency but without just leavingcreating an organic law that was about what was a repetition to help the disregard of what was the modernization of the banking system.

On the other hand, “the current monetary regime law of the Central Bank of Ecuador is presented, it is a“ typical ”organic law of this nature. In relation to it, in one of its annual reports, the general manager of the Central Bank expressed the following: “The law of the monetary regime is a clear and harmonic instrument that, by replacing the previous laws of coins and organic of the Central Bank,It widely provides the issuing institute for the necessary elements so that it can regulate the money market and puts it in capacities to avoid disturbances in such a market, moderating and softening them for the good of the stability of the currency ”.”(Carbo, 1978, p. 134)

In this way, it is noted that the law presented help for the problems of destabilization of the country since it was implanted in the fact where the coins are since the currencies were giving a minority value to what were originally from the Sucre theMore representative was the "ayora" named for the president of that year as well as the "Lauritas" named for being the first lady, which were the following smaller coins;These same showing how the value they had already had from the beginning of which they left, the law that the president with Kemmerer and some more managers served to maintain the value of each currency.

“The Kemmerer mission also gave way to the creation of the Superintendence of Banks, the Comptroller General of the State, the Mortgage Bank, the Pension Fund, the Ministry of Social Welfare, Labor, Agriculture, Charity, Health, Health, Hygiene, Statistics and Immigrationand colonization, the reconstruction of the Ministry of Finance, the creation of the Internal Revenue Law, the Coin Law, General Bank Law, Law on Agricultural Garment Contracts, Customs Law, etc.;and the arrangement of the internal debt and the resumption of the payment of the external debt.”(Eugenia Gozzi, 2010)

Through the laws established during the meetings that interfere with the Kemmerer mission, favorable laws are created for the facts that were occurring since then, the laws of the paragraph above have already been accepted and were already present in what was the registrationOfficer who called it Ayora to what was the banking system of Ecuador.

In short, and as part that is represented for the modernization of that year, it occurs since thanks to the arrival of Kemmerer it is estimated that in its Latin American journey aimed at prescribing remedies for the financial difficulties of the continent with its ideas, it can also be raised asimprove laws that are framed in improving the banking of Ecuador without affectations to the rest of the provinces;Taking into account that in this section the letters of the cities of Quito and Guayaquil joined to be able to relate to Kemmerer;

In addition, the laws created were benefactor for what was the creation of the Central Bank and thus the bankers accept to leave their money in the bank without any concern for the fact of giving;Taking into account that the Organic Law was presented as a degree in article 24 called Organic Law of Monetary Regime and State Bank, where it is announced that the Superintendence of Banks and Insurance are those that control. Existing laws that ensure oneself with the support of their money;being that these were created by Kemmerer who was renowned worldwide as an expert in currency and public credit.

conclusion

To carry out this investigation, I studied my criticism when doing an analysis and distinction of the information from the selected sources;So it is easier to say that the method used by historians of the selected sources is historiography being the set of methods proposed to write the registered and occurred facts. In this way, the limitations of each of the sources are reached, giving a unique value showing some were truthful and others were not for the subject, since through the retained information it is possible to get left alone with the necessary informationTo contribute to research.

The challenges presented by the historian is to publicize his investigations from an objective perspective and with truthful sources, omitting personal judgments since these would be presented as a limitation being that these facts would become opinions.

When referring to bias, it is about seeing how the statistical analysis that occurs when looking for the result of collection methods is distorted. Regarding bias, the different perspectives of all historians who previously did an investigation of the same subject, so that the selection is seen as the representation of analyzing what was the Kemmerer mission and its actants surrounding it in these years in these years.

It should be taken into account that history is related to the past and the present, so that the subjectivity of each of us has a way of seeing the world and accepting things as they are, so that it is unnecessary to relate history toAtrocity, being that this would no longer be objective but personally.

The reliability that can be evaluated from a source is to have to show the origin, the author, when and where it was done, as produced, the purpose, the credibility that presents and its limitations.

The historical event is an event that has some importance;It is implicit in research at the time of its importance is mentioned within the history treated. In this way, the historian works with sources of diverse type;as an objective to provide the necessary information on processes, phenomena related to the history of humanity or facts.

Bibliographic references

• Almeida, r. (1994). Kemmerr in Ecuador. Quito: FLACSO ECUADOR HEADQUARTERS.
• Carbo, l. (1978). Monetary and exchange history of Ecuador from colonial era. Quito: Caisec.
• Efrén Avíles Pino. (s.F.). Encyclopedia of Ecuador. Obtained from http: // www.Encyclopediadecuador.com/Kistoricos/Dr-Jose-Maria-Velasco-Ibarra/
• Eugenia Gozzi, R. T. (November 9, 2010). First Initiative for Deep Financial Reform in Latin America. Obtained from http: // fitproper.com/documents/own/mission_kemmerer.PDF
• Kemmerer, e. W. (July 26, 2019). Akifrases. Obtained from https: // akifrases.com/Author/Edwin-Walter-Kemmerer
• Trujillo, e. (1984). HISTORY OF PAPER CURRENT OF ECUADOR. Guayaquil: Union Graphic CIA. LTDA.
• Zapater, i. Yo. (2010). Central Bank of Ecuador Synthesis in its history. Quito: Central Bank of Ecuador.