The Sentinel=record., 1913-12-23
HUERTA MAKES STRENUOUS EN- DEAVoR TO SAVE HIS BIG
 FINANCIAL INSTITUTIONS.
GRANTS TEN DAYS HOLIDAY
In Order to Appease the Frenzy cf Depostors Who Are Making Runs on the Principal Banks of the Re public in Mexico City.

Mexico City, Dec 22.-The direc- tors of the Bank of London and Mex ico tonight began a careful scrutiny of the affairs of that institution and if their finding is endorsed by other bankers it is not improbable that as surances VII be offered the directors which will enable a full resumption of the business of the institution. It is reasonably certain however, that the bank will continue to avail itself of the decree of President Huerta, ,s- sued today making the last ten days of the present year legal holidays.
 With the exception of one other institution, it is believed no other bank than the Bank of London and Mexico will take advantage of the of fioial edlct, which authorizes fnan- cial institutions to do as little or as much business as they desire during what is regarded as a financial cri- sis.
 The Bank of London and Mexico was crowded to it's capacity at the close of business today and lines of men and women who sought to with draw their deposits extended into the street. Those who were paid were limited to 200 pesos and no assur- ances were given that even this much would be given out in the future. The approximate amount withdrawn from las a,l~ gfp anf l,~,rr d. manding tkeir money several days ago is said to exceed 100000 pesos. Of this amount 14,000,000 have been withdrawn since last Tuesday.
 The Bank of London and Mexico has in the various states twelve branches four of which were closed some time ago on account of loca conditions. These were at Monterey, Torreon, MaZatlan and Durango On minor scale the condition of the re- maining branches is similar to that of the parent institution, but all are taking advantage of President Huer- ta's decree, which has been telegraph ed to the various points where the branches are located.
 The critical position in which the Bank of London and Mexico was placed has been no secret for some days to the other banks and the sug- gestion was made on Saturday that Huerta be requested to save the sit uation by making it's possible for bank legally to refuse payments for period. The management demur- red as it believed it would weather it out, but at the opening hour this morning 1t became evident that it could not and the finance department of the Huerta government was called upon for aid
 A decree was prepared and the search for the president was begun. He was located shortly before noon and affixed his signature without hes itation. An extra edition of Fl Dia- rio Official was published, carrying the decree, and with this posted con spicuously in and about the building, the doors of the bank were opened early in the afternoon.
 President Huertas right to issue then decree was the result of the ac- tion of congress prior to adjournment when it vested in him extraordinary power oyer three departments of gov ernment, including the department of finance The decree recited that it was issued in accordance with this extraordinary power and that the hol- idays were decreed "on account of the difficult circumstances in which the country finds itself and in order to give sufficient time for unfounded alarm which has been created among the public to subside and to prevent the crisis from becoming general" The decree gives to the clearing house and all banks throughout the republic the right to suspend all busi- | ness and adds two nays or until Jan uary 2, to the period in which they shall not consider themselves com pelled to meet their obligations The members of the clearing house decided tonight not to take advantage of the decree, but to open as usual, accepting for collection checks against the Bank of London and Mex ico, the depositors of such checks to depend on the bank for payment If they are not paid they will be return ed to the depositors. It is expected this will have the effect of reducing the line at the paying windows and thus create the impression that the 1 run has been reduced.
 The affairs of the Bank of London | and Mexico also were discussed by | the clearing house members, and a | group of bankers conferred again with | the sub-secretary of finance. The | clearing house inquiry developed that the bank has in its vaults 12.000 GOO | pesos in coin and 2,000,o00 in bank notes. about 15 per cent of which are the dscredited state bank bills. |