The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-23
Measure Promulgated
in Order to Check
Run on Banks.
ONE INSTITUTION
CLOSES ITS DOORS
Financial Houses Absolved From
Meeting Any Obligations Till
January 2-Business Condi-
tons Worse Than Ever
Before in History of
Mexican Republic.

Mexico City, December 22-By presi-
Dental decree this afternoon every day.
Including to-day. until the end of the
present year was made :, legal holiday
in order to check the run on banks
here. The measure was promulgated
particularly for the benefit of the Bank
Of London and Mexico. which earlier
in tho day had closed it's doors.
AS soon as the decree was issued the
Bank of London and Mexico reopencd.
but refrained from paying deposits.
Provisional President Huerta says in
the decree he deems such action ncces-
sary TO protect the banks until public
confidence is more nearly restored. BY
the decree the banks are absolvcd from
meeting any obligation until January
2. II applies to ali banking houses,
whether n bank of issue or not.
With the exception of the Bank OF
London and Mexico and the Central
Bank. none has yet taken advantage
OF the decree, and business at the other
institutions is being conducted as
usual. Crowds gathered about the
doors Of these two banks. but there
was no disorder. Both banks are being
strongly guarded by police
Bank Believed Solvent.
Bankers here generally agree in the
opinion that the Bank OF London and
Mexico is solvent. The bank is be-
loved to have excellent collateral. Its
suspension to-day was not due to lack
of assets, but to the scarcity OF cur
rency. Silver and gold have both long
been scarce In the country. and recently
State bank bills have bee. refused eX-
ccpt in the States where they were
issued.
The London and Mexico Bank has
been embarrassed more than have other
concerns. because it has for q long
time been accepting deposits. while
the others have been refusing them.
1t is generally admitted that business
! and financial conditions are now worse
than they have ever been in the history
OF the republic Nothing but a coup
can save the situation. and with Zapata
hammering at the gates of the capital,
the situation is most critical.
Reports of Rebel Successes.
Reports of rebel successes continue
to pour in, but are not published by
the newspapers. in view of the warn
ing from Huerta. Among the reports
received to-day was one telling of i'm
portant gains by the Carranzistas at
Torreon and another OF further sue
cesses at Tampico.
The battleships Kansas and Connec-
ticut have been sighted off Tampico,
and are expected to arrive early to-
morrow morning. These vessels will
relieve the New Hampshire and Louis
lana. which Will leave for the North to-
morrow, the New Hampshire going to
New York and the Louisiana to Nor
| folk for q general overhauling.
The directors OF the Bank Of London
and Mexico tonight began careful
scrutiny of the affairs of that institu
ton. and If their finding is indorsed
by other bankers ii is not improbable
that assurances will be offered the di-
rectors which Will enable full re-
sumption of the business of the insti-
tuition. 1t is reasonably certain, how
ever, that tho bank VIII continue TO
avail Itself OF the decree of President
Huerta, issued to-day, making the last
ten days of the present year legal holi-
days.