New-York tribune., 1921-09-22
Refunding of
Mexican Debt
Is Discussed
Negotiations Opened in Mex
leo City Which May Re-
suit in the Solution of
Old Financial Troubles
Fisk & Sons Interested
Obligations in Default Since
the Year 1914 Are Esti-
mated at $780, 10000

Negotiations which may eventually
lead to refunding Of the entire ex-
ternal debt Of the United States of
Mexico, long in default, have been
begun at Mexico City between officials
of the Mexican government and
George A. Evalenko, vice-president
of Harvey Fisk & Sons, Inc. who ar
rived at the Mexican capital this week
Pliny Fisk, head of the banking
house, yesterday confirmed the re-
port that the firm has interested it.
self directly in move to bring about
consolidation and refunding Of the
Mexican external debt and said that
the Fisk representative had gone to
Mexico on the invitation Of the Mex
lean government. The State Depart
ment at Washington is cognizant Of
Mr.. Evalenko's mission.
About twenty years ago Mr.. Fisk
took prominent part in arranging for
the refunding of the Mexican external
debt under the old Diaz regime. II
is largely because Of this former
connection with Mexican finances, Mr..
Fisk said yesterday, that the bank
ers decided to see what could be done
toward arranging refunding opera
tion.
In Default Since 1914
Mexico's external obligations, which
have been in default since 1914, are es-
timated at approximately $190,00O,0O0
PRINCIPAL amount. There is in addi-
tion some $40,O00,000 of accumulated
unpaid interest The bonds are held
all over the world and were originally
issued in four denominations, Amer
lean dollars, German marks, French
francs and English sterling. In the
event that the negotiations between
the Fisk representative and the Mex
lean government result successfully,
a banking group would probably be
formed, it was said yesterday, to
work out a definite refunding program
While sufficient progress has not yet
ment with the Mexican government
with regard to consolidating the debt,
it is the hope of the bankers here as
we'll as abroad that scheme can be
evolved which will meet the situation
and take care of principal and interest
of the entire outstanding external debt
on a basis satisfactory to all of the va
ious foreign groups.
Various banking groups are seeking
to arrive at an agreement with Mexico
with regard to an arrangement for re-
funding the debt Of that country. The
International Committee of Bankers
on Mexico announced fortnight ago
that it had requested Thomas w. La
mont, Of j. P. Morgan g. Co., acting
chairman Of the international body, to
ter with officials of the Obregon re-
gime. Mr.. Lamont is planning to make
the trip the latter part of the month.
The banker will represent the inter-
ests of British, French, Swiss, Dutch
and Belgian groups in the Mexican
debt discussions as we'll as the Ameri-
can group.
Others Are Interested
Speyer & Co. also have taken an ac-
tive interest in the Mexican debt stu
alton, Independently of the other bank
ing groups, and early this year sent
out call to holders Of two issues of
Mexican government bonds, aggregat-
ing S6O,00o,oo0, asking for the deposit
of the securities preparatory to open
thorities. Deposits were received by
Speyer & Co. in response to this call
from all over the world. The 1nterna-
tlonal Committee Of Bankers on Mex
leo has refrained from asking for de-
posits of bonds from holders pending
the formulation Of definite financial
plan. 1t is believed the international
committees plan will be worked out
as soon as Mr.. Lamont returns from
his trip to Mexico City.
The Mexican government bonds list
ed in the New York market have ex-
hibited rising strength for several
weeks on the prospects that early
steps will be taken to refund the debt
and resume interest payments. The
United States Of Mexico 5s of 1945
sold at 59A on Tuesday of this week,
a recovery of 1917 points from the low
of the year. The United States of
Mexico 4s Of 1854 touched 42% on the
same day, compared with low Of %
earlier In the year.