The Washington herald., 1914-01-17
Loss SBY DEFAULT
!. OF MEXICO TOPIC
Representative Of New York
Bankers Sees Govern
ment Officials.
WILL FILE STATEMENT
Holders Of Securities in England.
France. and Germany in State
of CONSERVATION.

Willard Straight. representing j. p.
Morgan & Co., Kuhn, Loeb & Co., and
other financial houses, came to Wash
ington yesterday and conferred with the
State Department regarding the an
nouncement in Mexico City Of the default
on the semi-annual interest payment on
Mexico's foreign debt. This group ID
considerably interested in Mexican Sc
curities.
Mr.. Straight Informed ofiicials that the
American bankers who hold the Mexican
securities. to the amount q 81, 100000.
had no demands to make UPON the gov
ernment in connection with the default
OF the Huerta government but merely
wished to call to the attention OF the
administration the fact that such securi-
ties are held by them. He declared the
bankers were ready to take any course
in the matter which the State Depart
ment might suggest
He was informed that there was moth
ing the State Department wanted the
bankers to do. particularly. but was ad-
vised. In the interest Of those he repre-
sented. to set forth the loss which would
be suffered as result of the default
and file II with the State Department os
a claim. This probably viii be done as
a matter of protection Of the interests
Of the bankers when the day OF reckon
comes in Mexico.
Consternation Abroad.
II is believed that similar procedure
will be adapted in their countries BY the
British. French, and Germans, who are
holders OF Mexican securities to a much
greater extent than are Americans Ac-
cording to reports from those countries.
the prospect of the loss of the interest
due on the Mexican bonds has created
real CONSERVATION in many quarters. Ap-
peals to the governments already have
been made, but II is not believed that any
Of the governments concerned will feel
in a position to undertake any positive
measures looking to enforcement Of the
payment due from the Mexican govern
ment-
The failure of these governments to
get any response such as has long been
wished for from the United States is
not regarded as making the outlook for
the holders Of the securities any more
favorable. Inquiries made yesterday
emong those in touch with the attitude
Of the European governments failed To
reveal any indication Of further action
by those governments beyond that taken
Thursday when Mr.. Bryan was asked
IL this government had anything to an
nounce as to American policy as a re-
suit of the default in Mexico.
1t is pointed out by those long IA
miliar with national finance in Latin
America that defaulting on interest pay
ments is too common an offense in those
countries to occasion any excitement
now. Guatemala went for sixteen years
without paying a cent of interest on the
bonded debt held IN Great Britain, and
1t was not until last spring that Great
Britain reached the point where she was
ready to send a warship to the Guate-
malan coast for the purpose Of con-
vincing Guatemala that she must make
a settlement. This accomplished the
purpose, but in view Of the numerous
in the Mexican situation,
and its greater importance, 1t Ii not ex-
pected that any OF the nations will seek
to compel respect of financial obliga-
tions by sending warships to that coast.