New-York tribune., 1922-04-04
Settlement of
Mexican Debt
Now in Sight
DE la Huerta Wires He Will
Come to Conference of
International Banking
Committee Here in Nav
News Strengthens Bonds
Total Indebtedness Involved
Is Auihoritatively Esti-
mated at $758,OOO, 900

the United States and Europe and the
obregon Administration for the fund
ing and reorganization Of the Mexican
governments external debt and in
tcrnal debt held abroad is expected in
the financial district to result from
tho formal acceptance yesterday by
Adolfo dc la IIuorta, Mexican Minister
OF Finance, of an invitation to attend
y conference here late next month with
American and foreign rcpre sentativcs
OF the international banking committee.
l nc amount of Mexican ndett cdness,
either involved din rectly or affected by
the negotiations and inclusive Of &C
crued interest and amortization charges
IN default, was authoritatively csti-
mated yesterday at more than $685.
100000. virtually complete compila-
ton shows that Mexico's direct debt
including guaranteed railway bonds,
amounts to 1922, 900 900. on which there
was IN default as Of January /, 1922
81 100000 in overdue interest and
pore than $40 100000 in past due sink
ing fund payments. This total includes
tnc internal 3 per cent silver loan Of
1876 and the internal per cent silver
loan of 1884, aggregating $4,000 900,
much OF which arc held abroad
3o,oOo,0O0 Rail Bonds
In addition to these direct oblsa-
tions there arc outstanding $3.50 100000
railroad loans that do not bear the
MeHlcan governments guaranty, on
which $u,000000 in overdue interest
and about $6,00000 in amortization
charges arc in default The defaults
apply to interest and sinking fund
payments, but technically the bulk Of
inc principal is also in default under
the terms of the indenturc under which
most Of the bonds were issued.
Announcement Of De Ia Huerta's in
tcntion to come to New York was made
late in the afternoon by Carlos r,
Felix, in charge Of the Mexican gov
ernment's financial agency in New
York. but advance information Of the
statement was indicated by the action
Of the Mexican 4 and s per cent loans
IN the bond market. The significance
which traders attached to the event
was reflected in a net rise of 5A and
.. points, respectively, in these is
sues. The former sold up to 62 and
the latter to 65, tho highest levels at
tanned since 1914, the year of the de-
fault.
Mr., Felix made public the following
from 1lormosillo, MeXico, confirming
previous unofficial reports Of his pro,
jected visit:
"Plans for a meeting between the
representatives of the international
committee of bankers on Mexico and
myself IN New York City the latter
part Of May, have been practically com.
pletcd. had, as previously an
nounced, planned to visit New York
this month. but postponed my trip
upon receiving information from Mr.
Lamont, chairman OF the committee
that he was about to 90 abroad on other
business, but that upon his return in
MAY the European delegates would ac-
company him to New York in order to
mcct nc.
Relations Cordial
"Accordingly, upon receipt Of sd-
vices from Mr.. Lamont that he has re-
turned with the foreign delegates,
will leave for New York Immediately
in accordance with instructions from
add that oar relations with Mr.. Lamont
and with the other members of the in
tcrnational committee have continued
with all cordiality since tho confer
cnccs that were initiated last October
in tho City Of Mexico. and progress has
been accomplished in that it has
brought us nearer to good under
standing, either by correspond or
by special cnvoy7 that from both
parties have been commissioned to
Communicate our points Of view"
Thomas W. Lamont Of J. ?. Morgan
& Co., when shown this statement,
issued tho following announcement for
tho committee:
I'VE arc glad 10 confirm Finance
Minister dc Ia Huerta'1 statement that
At,
meeting here the latter part of neat
US Of this determination A meeting
of The British and French tectiorg of
the international committee Of bankers
or Mexico will be held in Paris upon
the arrival there, on April IS, of Mr..
Lamont, chairman OF the American
section Of the committee. Delegates
of thc British and French sections
have arranged TO return to New York
with MI. Lamont for the meeting with
Minister dc la Huerta, TO be held next
month"; IT is hoped that such a con-
ference, participated in by all the in
tcrests concerned, will 60 far in work
ing out a solution Of pending questions
with reference to the Mexican govern
ment's external indebtedness.
Commenting on the statement issued
yesterday, T. +. Morgan said: "If a
man has debts and honestly wants to
paw them there is always g way to
meet thst fellow half way. | don't
sec why The same does not apply in
this case
Optimism in the financial district
depending on the arrangement of the
conference was based largely uron two
considerations nforms ton and belief
that the principal obstacle to settle
ment presented uy the oil tax agree
ment has been eliminated. and the un-
derstanding that De la Huerta would
not bn urged to come here unless ready
to reach All agreement The Mexican
government has ceased application of
the proceeds Of the oil tax to purchase
of the bonds in the open market for re
tirement and has deposited them in q
separate fund in the Banco Naciona de
Mexico.
Calls for Deposits
The question of calling for deposit
Of the Mexican bonds outstanding is
expected TO come up for discussion at
the Paris meeting The call for depos-
its has so far been issued only in the
case of two loans handled in this mar
ket by Spcyer & Co, and was made
when the firm. since represented on the
committee, was acting independently
What representation Germany will
be given in the final settlement also is
in order for consideration at Paris. A
considerable amount of Mexican securi-
,,,ore Il ! y .