The floating debt of warrants was practically cancelled in 1909, after a one-mill levy for four years for this purpose.
The taxes were habitually collected many months in advance, and the colossal floating debt was increasing rapidly.
In 1893 the depreciation of silver necessitated stringent retrenchment; but the budget balanced for the first time during many years, the floating debt was converted, and a loan raised for the completion of the Tehuantepec Railway.
The public indebtedness of Mexico includes a foreign debt payable in gold, an internal debt payable in silver, and a floating debt covering unpaid balances on appropriations, unpaid interest, and other credits and obligations.
There was an empty treasury, and the floating debt amounted to X7,000,000; maladministration was rampant in every department of the state; the national guard was mutinous, while the small army of regulars was badly organized and inefficient.
By the Law of Liquidation the floating debt was paid off, the whole debt being consolidated into four large loans, upon which the rate of interest was reduced to a figure which it was considered Egypt was able to bear.
The whole proceeds of the loans and floating debt had been absorbed in payment of interest and sinking funds, with the exception of 16,000,000 debited to the Suez Canal.