The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-07
His Financial Agent, De Ia
Lama, Puts Total Loans
at About $15,OOO,OOO.
GOVERNMENT HAMPERED
French Banks Place It in Awk-
ward Position in Matter
of Bonds.
sp,eia, cabie p,spsfch TO TIE sux.


PARIS, Jan. 6.--LIntorn,dtion. f,nan-
oiai newspaper. publishes an interview to-
day with Adolfo de la Lama. President
Huertas financial envoy in Europe.
Senior de Ia Lama. after explaining the
arrangement made to pay the interest on
the bonds of the national railroads OF
Mexico, which fell due on January /, said
that the second part Of his mission. the
modification OF the terms OF the 1913 loan.
has not advanced much.
This loan amounted to $4,000. 900. OF
which French banks took 33o,000.o00.
They had an option Of a further S26.00o.-
900. which expired on January 1. and
second option Of $4,000. 900, which expires
tomorrow.
The first option was not taken up. Senior
De la Lama admitted that the banks were
perfectly within their rights In this re-
spect. but he says that they placed Mexico
In a rather awkward position. Mexico is
barred for two years from negotiating the
bonds which the French banks have not
taken up, and six months have already
elapsed. The Mexican Government can
pledge the bonds for loans but cannot
sell them.
CustomS Receipts TIED Up.
At the same time 50 per cent. OF tho
customs receipts are tied up as z pledge
for the repayment Of loans. without any
eQuivalen in money to the Mexican Gov
eminent. which therefore Is seeking per-
mission 10 take back Its liberty OF action.
This liberty. according to Senior de la
Lama, the Government imprudently gave
UP. desiring not to infringe on the rights
q the bankers who lent money to Mexico.
Tho monetary needs OF the Mexican
Government. Senior de Ia Lama continued.
are not 20 great as is generally supposed.
The Treasury receipts. although they DO
not show the ~ or 16. per cent increase
a. In former years, exhibit an increase
a almost per cent. over those OF 1912.
OF the s30,000.000 obtained last sum-
fnsr. $2o.oQ0.0oo was spent in repaying
earlier loans and deducting commissions
and the difference between the issue price
and par. only 100000 remained clear.
IF the $&.A0o.000 which the banks lent
- u.s. said President Huertas agent,
rs added. the total amount We have Dor.
rowed 10 less than &lb.o0o.oo0. which Is
not enormous. The negotiations for an ad-
vance Of $4,000, 900 In London for the
Banco de Londres Mexico have failed,
but measures were taken to permit the
bank to resume specie payments when the
moratorium expires
The banks charter permits II to issue
notes to the extent OF twice the amount
OF cash In hand. and this privilege may
b extended to the effect that 1t may issue
notes to the extent OF thrice the cash
reserve. as was done In the case Of the
Banco Nacional.
National Honor At Stake.
ut IL essential for the national honor
and welfare OF Mexico that President
Huerta maintain his position until the
general elections are held next July, when
= Gen. Huerta, being ineligible for reelec-
ton. will bow to the will OF the nation,
- doubtless the United States also will do
when that country Is better informed.
when the rebels no longer enjoy the
moral support OF the Government Of the
United States the material support given
TO them by certain Americans who are in
tsreotsd In oil will diminish. The activi.
ties Of the rebels. which the American
press sxagSerates. will speedily decrease
when this support 10 Withdrawn from
t6nmS