The New York herald., 1922-04-04
MEXICAN DEBT TOBE
THRESHED OUT HERE
International Bankers to
Meet Republics Enjoys
in May.
BONDS ARE HIGHER
Lamont to See Foreign In
terests in Paris and
Arrange Meeting.
MILLIONS In DEFAULT
MILLIONS IN DEFAULT
Interest of $4,000, 900 Long
Since Unpaid on Guaranteed
and Railroad Obligations.

The long expected announcement
that negotiations between interna-
tional bankers and the republic of
Mexico for the financing of that coun-
try's defaults had reached definite
stage was made yesterday.
A telegram from the Mexican Min
lister of Finance, Adolfo de la Huerta,
saying he would be in New York in
May to confer with members Of the
International Committee of Bankers
on Mexico on ways and means of re-
habiltating Mexico's credit, was made
public and TIE chairman OF the inter-
national committee issued a statement
confirming the news.
In advance of these official an
nouncements Mexican bonds listed on
the New York Stock Exchange ad-
vanced rapidly, recording gains Of
from 3 to points.
Efforts by the present Mexican Gov
ernment to reestablsh It's credit found
their inception. in the visit of Thomas
w. Lamont, of ]. p. Morgan & Co..
chairman of the International Commit
tee, to the Mexican capital last October
The International Committee was formed
soon after interest on the Mexican debt
was sadefaulted in 1914.
May Mean Recognition.
The outlook for the payment OF back
interest on outstanding Mexican bonds
has never been so promising as II is at
this time. Wall Street believes. Present
plans call for the holding of this confer
ence in New York city the latter part of
hext. month. 1t is assumed generally
that the solving of Mexico's financial
problems might be followed by recogni-
tion of that Government by the United
States.
Mr.. Lamont will go to Europe in few
days and he will meet with the- inter-
national delegates in Paris. He will
bring these delegates back with him to
the United States. One important ques-
tion that will be taken up at the Paris
meeting. it is understood. will be that of
calling for deposit OF all Mexican bonds
row in default.
1t is quite possible that refundins
operations in connection with the pay
ment of Mexico,s defaulted interest
might make necessary, large inter-
national loan TO that country. The
present state OF Mexicos finances are
more or less in doubt. however, and
bankers say that it is impossible to pre-
dict what steps will be taken to help
that country out of its hole 1t is be-
lieved that Mexico could resume inter
est payments on its debt at this time II
some plan for collecting 1t could be
found.
DefauIted Interest xIS2,OOO.OOO.
Mexicos direct debt. including guar
anteed railroad bonds. totals approx
mately 1922, 100000 gold and its rail-
road debt not guaranteed by the Gov
ernment totals between S220,000, 900 and
$3.50. 100000. On the direct debt the
Mexican Government owes investors in
back interest sum of about Sill 00O,-
000. Overdue interest on the railroad debt
not guaranteed by the Government
amounts to approximately S7l,000, 900.
Sinking fund payments in default
amount to about $26. 100000. The
amount of actual principal in default
through maturities of bonds is compar-
atively small, although technically all
the bonds fell in default as to principal
when the Mexican Government stopped
paying Interest.
The members OF the British section of
the committee are Lawrence Currie, sir
Clarendon Hyde, f. r. Peacock, Vivian
n. Smith, Vincent w. Yorke and Frank
G. Tiarks. French section: William
D'Eichthal. George Heine, Paul Creten-
ier. VI. Griolet. Jack Kulp and Joseph
simon. The Swiss representative Is j.
Pictet. the Belgian Auguste Dupont and
the Netherlands is represented by Hope
4 Go.
The American representatives, are
Thomas w. Lamont, John ]. Mitchell.
Walter Rosen, Charles IL. Sabn, Morti-
mer Schiff, G. T.. Mitchell George w.
Dawson. Albert II. Wiggin. James
speyer, @. Hutchings and Robert Wind
sor
Buying Of Mexican bonds in anticipa-
ton OF a settlement of that country's
financial difficulties has been active for
some time. On Monday this buying was
particularly aggressive. and at their
high figures Yesterday the Mexican Is
were UP 7 poin;s over Saturdays final
figures at So. and the IS were up 2G
points at SIS. These advances were on
top of net gains last week Of 7M points
and AZ points respectively. Closing
prizes OF these bonds yesterday were
lower than the top prices, however a re-
action having occurred late in the after
noon. The As closed at 57ia and the S.
off1