The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1922-05-31
CONFERENCE WITH BANKERS MAY
END MEXICAN FINANCIAL MIDDLE

New York. May 3o.-tBy The Asso-
ciated Press)-Settlcment OF Mexico
financial problems. which has been ne'u
in allegiance since 1914 when that eoUh
try ceased the payment OF interest on
most Of It's internal and external loans
IS eApc-ted to result from the confer
cnce 10 be held here between Ado'to dc
Ia Uucrta. Mexican secretary OF the
treasury. and a delegation OF the ln'S'
national committee o. bankers on Men,
60. headed by Thomas W. Lamont WIZ
arrived from Europe today.
While exact statistics are not ootd'"-
able MeXico'S national debt Is approx.
mately S7eO. 100000 not inciud!hH
claims for property damages aEa'ns'
the government and depreciation OF ia
tionallzed railroad property. IT.,
The direct external debt as c"''p''su
by the international COMMITTEES an"H" :
IN spse r3T SISIn. the direct Internal
debt to 500. 99S. 29S.l3: the bonds guarah-
teed by the Mexican government icy
clusiVc Of railway Cuarart"eS) ~ no.
nn9.53iSS and rho bonded Indebtedness
Of the National Railways OF Mexico -
s3cOl4l.tTS.3G. making = total or sO'"''
oSeS264l These figures inc!ude lAtcl
est approx imatCd TO December 81. " L
Transaction in Mexican government
sAruritlas have been very active since
the debt retunding negotiations W'Ic
resumed. In the first flVe months OF
this YEAR. Mexican government 80 rang
cd From 81 10 TOi. and the 1 : from 81 =
to 81.
Haif Are Held Abroad
Local bankers estimate that wei over
half Of these Mexican government nohaS
and notes are held In Europe. where
most of the public offerings took place.
The war made II almost impossihlS 10
keep n record OF transactions IN these
securities. but a large percentage OF
them were held originally In Germany
II Is known. however. that large blocks
of these German-held securities wsre
sold in the London. Paris and New YORK
markets in the few weeks preceding the
outbreak OF the war.
II Is reported also that Allied and
neutral investors obtained possession OF
others during the war despite the tace
that trading with the enemy was for
hidden in all Allied countries. Repre-
Sc: ,attves OF German interests here
frankly stated that II was impossible
To estimate the present Mexican hold
ink OF German investors.
Fa lure Of the Mexican government TO
meet It's obligations followed soon after
the assassination Of President Fran
Cesco Madero in 1918.
Cabrera, an Obstacle.
Louis Cabrera, Secretary apf the Urea
sury. under Carranza. was regarded by
international bankers rs GntaSon!sttc to
all their proposals and he WAS geUer-
ally blamed by them for the failure =
com" 10 terms. Last fall Mr. Lamont.
as chairman Of the committee. went %
Mexico. ci;y ~ the invitation Of the
Mexican government and spent two
weeks !rou terrinG with Mexican trca-
Sury Officials. Mr.. Lamont ..tatcd upon
his departure that after 4 long discus
sion the Mexican government and the
International committee had failed Ia
come To Il substantial agreement bUt
Adoifo lie Ia Huerta. Mexican Minister
OF Finance. was more hopeful
While no official statements were
given out as to the nature OF the dis
cuSSsonS II Was reported from Eener.
ally authentic sources. and never denied
that one Of the features OF the agree.
ment proposed by the McNIcans was
that American oil men should purchase
these Mexican government securities in
the open market and use them 10 pay
their export taxes to the Mexican gov
ernment. the understanding being that
the securities would be accepted by the
Mexican government at their ar value.
Ir;erna tiOaal bankers loC%.d with
diSfIvrr upon This proposal. which they
considered would have meant Courtea-
RuciIG the Mexican government in the
disregard Of It's pledge to devote the
proceeds OF It's export and Import taxes
TO the payment Of sinking funds or Ger.
tain OF it's exterior Obligations. They
also pointed out that Il would encourage
the government. by withholding cur
rent income. to deprcSS the price OF Its
outstanding securities so as TO buy
them in at lower prices fer itself using
FOR this purpose the revenues specific;
ally intended FOR the Payment 81 inter
est on It's foreign bonds.
Not Abandoned
Acceptance OF the plan by ;hc iater'
national bankers also would havC placed
them In the positiun. they cor;cndrd. 81
z. Ing 10 the persons to whm they sold
ti,c bonds at or near pay AMI ~ Undue
l'= them 10 part with their bonds 4;
rr-vlatcb prices,
While negotiations for settlement
were temporarily halted by Mr.. La
m rts return. they were not abandoned
Informal communications nassed bacG
and forth between Mr., Lamont and Mex
lean officials. Early in April OF this
year Il was announced that Senior dc la
Ruerta would come to New York late
In May 20 discuss REIMBURSEMENT OF the
Mexican debt with }Ir. Lamont and a
delegation Of the international commit
tee. Soon afterward Mr.. Lamont sailed
FOR Europe for preliminary discussions
with his British and French associates
prior TO the conference with Senior de
n Huerta IN this CITY.