The Birmingham age-herald., 1923-10-21
SITUATION GROWS | TENSE OVER NIGHT.
Most Serious Political And Financial Upheaval In
 Nations History Comes


 MEXICO CITY, Oct. 20.-Mexico's s political volcano has erupted. Eric x tion between the De la Huerta and Gales factions. after weeks of heat I ed charges and counter charges, has resulted in the most serious political and financial upheaval in the history or Mexico. Each hour brings forth more sensational charges and fur ther split between the factions and between President Obregon and for mer Secretary of the Treasury de la Huera, who were friends for years. Overnight the situation has taken on serious aspect and Mexico City is feeling tension equaled only in the days of revolution. Sunday Gen. Elias Gales returns to Mexico City after an absence of six months. A big demonstration is planned with 5O,000 or more expected to parade, but as a result of developments in the last 12 hours fear is expressed on all sides as to what may happen.
 Friends yesterday are enemies to- day and there is hardly a street cor ner where little groups are not gath ering to discuss the situation. News papers are devoting most of their space to the political situation.
 Says Nation Faces Bankruptcy.
 The political storm broke Friday night when Secretary of the Treas
  la Huerta, issued a statement on the governments financial affairs, blam- ing De la Huerta for the bad condi- ton. This statement was followed by sensational statement by Obre- gon against alleged irregularities by De la Huerta and announcing that wages of all government employees, including those in the army. would be reduced 10 per cent because the nation faced moral and material bankruptcy.
 The climax came at midnight when De la Huerta answered Oregon and announced he would have more sen sational statements to make short ly; even though it cost him his life.
 High lights in the Pani statement follow:
 'The difference between author ized expenses and probable income this year Is 90,000, 900 pesos.
 ''Pay rolls are inflated. It is esti mated that nearly 10 millions yearly are spent for excess employees and special commissioners in different departments and that six millions, or 60 per cent, is Illegal expense. Euge Deficit Said 2 To S Exist.
 -'The balance. September 30, ex- cluding the foreign debt, for nine months shows deficit of 37,241,7S3 pesos.
 Nearly six millions have been used from funds destined for the exterior debt and deposited in the national bank
 Drafts on. the treasury depart ment in favor of Morgan & Co.,, destired for deposit to the ex- amount of over 100000 pesos.
 Debts seriously compromise the financial and moral credit of the nation here and abroad and to con tinue them means complete bank ruptcy.
 "A solution is to cut salaries 10 per cent, with suspension of extra em- ployes, thereby saving So0,ooO pesos monthly.
 Suspension of unnecessary work should follow"
 Pani proposed selling certain prop critics or trying to obtain short loan. guaranteed by national prop erty.
 Charges Made By Obregon.
 High lights in the Obregon state ment, referring to the Pani state- ment. follow: .4st
 rWe are facing material and moral bankruptcy, which we never before have known. We must act with en- ergy and a perseverance so that the administration will repair the errors and recover it's responsibility" Obre- gon announced he would cut pay of employees 10 per cent.
 High lights in the Delahue state ment follow:
 "The declarations of Gen. AL varo Obregon were not a surprise to me nor was the stupid and unjust report of Alberto Pani, as it is well known that they only waited until my candidacy for the presidency to attempt to stain my name.
 "They are trying at present to break down the treasury department, but the whole nation knows that for three years I knew how to attend to the necessities of the nation. Later next week, with calmness, I will demonstrate to the entire nation the untruth of the charges. I will make startling statements to the nation; the same road with Francisco Villa, that is, if hidden hand, following does not take my head from my SbOnIdarc