The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1913-12-23
Huerta Signs Decree Deem
ing Action Necessary to
Protect Institution
OFFICIALS HOPE SOON
TO RESUME BUSINESS
Exhaustive Examination of Banks
Condition to Be Made-Big Run
on Bank in Past Few Days
Causes Alarm

Mexico city. December 22.-The Bank
of London and Mexico closed its doors
today.
Bank officials were unable to secure
were forced to suspend.
The bankers here generally agree In
the opinion that the Institution is SOL
vent aud the closing may be only tenn
porary.
Provisional President Huerta says in
the decree he deems such action neces-
sary to protect the bank until public
confidence is more nearly restored BY
the decree the bank is absolved from
meeting any obligation until January .
1t applies to. all banking houses whether
bank of issue or not
Mexico city, December 22-The di
reetors of the Bank of London and
Mexico tonight began a careful scrutiny
of the affairs OF that institution and If
their finding is indorsed by other bank
ers 1t is not improbable that assur-
anee Will be offered the directors
which Will enable full RESUMPTION of
the business of the institution. 1t is
reasonably certain, however. that the
bank will continue to avail itself of tho
decree of President Huerta issued to-
day making the last 10 days of the
present Year legal holidays
With the possible exception of one other
Institution 1t is believed that no bank
than the Bank of London and Mexico VIII
take advantage of the official edicit
which authorizes financial institutions to
do as little or as much business as they
desire during what is regarded as a finan-
rha Ias4t,
Mexico was crowded to it's capacity at the
closing hour of business today BY men
and wnfbeu Who wero rrNntE IL withdr0N-
| their deposits. The lines Of depositors ex-s
tended from inside the bank TO the street
Limited Amounts Paid
The amounts paid depositors were linn
tied to 200 pesos and no assurances were
given that even this much would be given
out in the future. The approximate
amount withdrawn from the bank since
depostors began demanding their money
several DAYS ago is said to exceed 17,000,-
000 pesos OF this amount 100000 pesos
have been Withdrawn since last Tuesday
The Bank OF London and Mexico has
In the various states, y branches, four
of which We're closed some time ago on
account of local conditions These were
at Monterey Toreon. Mazatan and
Durango. On a minor scale the condi-
ton of the remaining branches is similar
TO that of the parent institution, but all
are taking advantage of President
Huertas decree, which has been tele-
graphed to the various points where the
branches are located.
The critical position i'm which the Bank
of London and Mexico was placed, has
been no secret for some days to the,
other banks and the suggestion was
made on Saturday that President Hueria
be requested to save the situation by maxi
ing it possible for bank legally to re-
| fuse payments for "A period. The man
agement demurred, as 1t believed it could
weather 1t out, but at the opening hour
this morning 1t became evident that it
could not, and the finance department
was called upon for aid
A decree was prepared and the search
for the President was begun ~ was
located shortly before noon and affixed
| his signature without hesitation. An ex-
ira edition of Eel Diario Official was pub
lished carrying the decree and with this
posted conspicuously in and about the
| building the doors of the bank were
opened early in the afternoon
President lIuerta's right to issue the
decree was the result OF the action of
Congress prior to adjournment, when It
vested in him extraordinary power over
three departments of government. includ-
ing the department of finance The de-
cree reeited that It was issued in accord
ance with this extraordinary power and
that the holidays were decreed ION ac-
count of the difficult circumstances in
which the country finds itself and In or
der to give sufficient time for unfounded
| alarm which has been created among the
public to subsde and to ! r"ent the
crisis from becoming generat%