Evening star., 1922-10-28
CLAIM LAW VIOLATION.

BY the Associated Press.
MENICO CITY. October 2S.-Orders
to close the Mexican consulate in New
York if the Oliver action there was
not Immediately withdrawn were dis
patched to Washington by the for
eien office. which claims that under
international law the government is
immune in such a procedure.
Orders affecting the other consul
lates had not been sent up to noon
today. it was said. but were being
considered.
1t was stated officially at the for
eign office that the Mexican govern
ment has no intention Of extending
consulate closings. similar to that at
New York. until an overt act Is com
mitted In other sections" 1t is also
asserted that the New York consulate
will he closed until some legal means
is obtained for lifting the Oliver viii
of attachment.
Government Contention.
The government contends that 1t ia
indecorous for the consulate to be
kept open II the writ of attachment
still lies against 1t.
The foreign office, in confirming the
issuance Of the closing order. said in
a statement today that the step was
taken because IT was considered in
decorous to permit the consulate to
function under the writ" when. as is
the case all over the world. "it should
be permitted the prerogatives and i'm.
munities of it's class"
1t was semi officially stated this
afternoon that the foreign office at
present had no thought of extending
its closing order to other than the
New York consulate. deeming that
the oliver action is directed against
the New York and Mexican offices.
Reaction. which Is considered as
highly significant in financial circles.
has been noted here within the past
forty-eight hours. with London and
Paris apparently benefiting. A sur
vey Of the situation made by John p.
Bushnell. acting American trade COM
missioner, convinced him. he said.
that lack of confidence was prevalent
in all business circles. and that COM
States and Mexico would be material
ly damaged in consequence of the
oliver action and the subsequent con-
sulate closing. Mr.. Bushnell declared
that his Investigations showed Brit
ish banks were doing an increased
business to the detriment Of Ameri-
cans.
London exchange rose perceptibly
shortly before noon, when rumors
were confirmed that the New York
consulate had been closed. Canadian
ana bTlllSH udhho lSPoIl IT
business on London has increased al
most 30 per cent within the past
twenty-four hours, and North Ameri-
can and other banks dealing on New
York report a corresponding decrease.
These latter banks say also that
dozens of depositors holding dollar
accounts-that is accounts payable
with New York drafts-have with
drawn their funds and are redeposit-
ing them in British banks, even
though they are losing slightly on
the exchange.
A meeting of the executive COM
mittee Of the confederation Of cham
hers of commerce Of Mexico. embrace
ing all nationalities. has been called
to consider the situation.
Ell Mundo interviewed numerous
merchants and bankers. and. accord
ing to its Investigators, "all business
men recognize that the harm result
ing from the consulate closing is more
than compensated by the satisfaction
of feeling that the government is pro-
ceeding in a digni1ed and honorable
manner"
Included in the order regarding the
consulates were instructions to close
down all the Mexican government
offices in New York, such as the rail-
ways and financial agencies. The en-
bassy was also instructed to inform
all firms in New York doing business
with Mexico regarding the closing
down.