New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-23
Huerta Comes to the Rescue
by. Making Rest of
Year Holidays.
REOPENING FOLLOWS
PRESIDENTS DECREE
Suspension Due to Scarcity of
Currency to Meet the De-
mands of DepositOrs.
by Cable 10 The Tribune }

Mexico City. Dec. o2-The Bank OF
London and Mexico failed TO open It's
doors this morning President Huerta
then issued a decree declaring all days
legal holidays to the end Of the year, so
as 20 enable the banks 10 pay or not as
they choose. and about noon the Lon
don and Mexico Bank opened one-haiI
Of it's folding doors. The premises were
thronged Immediately by persons seek
ing TO withdraw deposits.
Under the terms Of Huerta's recent
decree making the notes OF the Ma
tional Sank and the London and Mex
leo Bank legal tender the latter bank
might pay depositors in its own notes
but II is understood that the bank has
reached the absolute legal limit for the
issue Of notes and cannot issue more
because il does not hold the requisite
stock Of cash II is. therefore. paying
500 PESOS on all checks over that
amount and SO per cent on all smaller
checks.
IntTe mas nttIl no run vi any FN''N'
bank. The Offices of the National Bank
presented their usual appearance to-
day and II was quiet and serene at
the Canadian Bank.
Ry the end Of the month the govern
ment hopes to sct money from France
TO relieve the tenseness OF the financial
situation.
The crowd al the Bank Of London
and Mexico was not excessive. but po-
lice were detailed TO keep order, and
there was some scuffiing 10 get inside.
Huerta's decree declares that no obi
CATION Of chartered banks shall be pro-
tested for on-payment until after jan
uary =. 1914. but that in the mean time
the banks shall allow the same interest
on the amount Of such obligations as
they allow on deposits, II they allow
any.
Like tho National Bank. the Bank ~
London and Mexico is controlled by
French capital. and its name in that
respect is misleading.
To-day's suspension Of the bank wa,
not due 10 lack Of assets, but TO the
scarcity Of currency. silver and gold
have long been scarce in the country.
and recently state bank bills have been
refused except in the states wnere they
were issued.
Bank Makes a Statement.
The management Of the London and
Mexico Bank gave out this evening the
following statement,
The abnormal situation through
which the country has been passing
has occasiOned. in recent months es
pecially. considerable withdrawal Of
cash from the banks on one hand and
on the other scarcity OF bank bills.
This latter circumstance has been a
serious obstacle to the plan Tor regu-
lating fduciary circulations as con-
templated by the Executive decree Of
November > last
In these circumstances namely.
withdrawal Of cash from banks and
scarcity Of bank bills. no course was
open but temporary suspension Of oper-
atoms Is a measure Of salvation for
the important interests of all kinds
confined to institutions of credit.
Otherwise the banks would expose
themselves to positive bankruptcy. with
results disastrous to every one.
Thus the measure embodied In the
Executive decree authorizing banks TO
suspend operations until the end Of the
month is in reality OF public utility
and a salvation for our anomalous sit
uation."