The Washington herald., 1914-02-01
WHY DELALAMA
! Resigned PLACE
Quit the Mexican Ministry
Because Huerta Suspended
Interest Payments.
BREACH Is IRREPARABLE
His Financial Negotiations in Pans
Had Been Watched Closely by
Ambassador Herrick.
,p.cial Cable to The w.shinstoo Herald.

Special Cable to The Washington Herald.
| Paris, Jan. H.-The secret of the resig-
nation of Senior de La Lama as Mexican
Minister OF Finance was revealed today
from an autho itative source.
Shortly after Senior de La Lama's ar
rival here he brought on several bril-
liant financial coups for the benefit OF
the tottering Huerta administration. Then
came Huerta's decree suspending pay
ment of the interest on the national rail-
road and other bonds. and then De la
Lama threw up the sponge"
He IL now in Switzerland. and his
friends positively assert he will never
return to Mexico as long as the dictator
retains even what little power he now
holds.
Huerta and De la Lama were once the
most intimate friends, but the breach
between them In irreparable.
Credit In Rad Condition.
When the Finance Minister arrived in
Paris last fall, he found the Mexican
credit In an almost hopeless condition
January interest on the old issues of
national bonds. but II was his task to
raise money to pay the interest on a
partial issue Of new bonds for which the
Madero government was responsible.
Paris bankers holding an option on the
unissued balance Of these bonds refused
outright either TO abandon their option
or to underwrite more bonds. De Ia
Lama, however. induced them to defer
their demands for interest due until
January 8. and then he hastened to Lon
don. where he raised a short-time loan
to cover the interest on the 1913 bonds.
II was Immediately after the temporary
lifting OF the Huerta government from
the financial quagmire that De la Lama
received news from Mexico of the sus-
pension OF the bond interest payments for
two years. In a state of the highest in
dignation he Immediately cabled his resig-
nation.
De la Lama's negotiations in Europe
had been closely watched by the Ameri-
can Embassy in Paris. Mr.. Herrick hav-
ing been informed OF every move on the
part of the Mexican representative The
French government was given to under
stand that II could not wink at the bank
ers taking up a new Mexican bond issue
without offending Washington.
France constantly has expressed politi-
cal sympathy with the United States in
the Mexican affair. and Mr.. Wilson's
administration has insisted that financial
aid afforded to Mexico by rench banks
would be as detrimental to American
interests as an open approval of the
Huerta government.
Comedy I'm Diplomacy.
Incidentally, the crisis has illustrated
the comedy in modern diplomacy. Am
bassador Herrick, through his amiable
but very astute attitude toward Huerta
and the constitutionarst juntas at Paris.
has been enabled TO keep the State De-
partment at Washington in close touch
with the innermost secrets and activities
OF both factions. He has had as guests
at his tables alternately the otficial Mexi-
can Minister and the Carranzist represent
ative in the person of Miguel Lombardo
Sonora de la Lama also has been Mr..
Herrick's guest. as well as numerous
wealthy Mexicans residing here.