The Archive · 1938

U.S. to Cease Buying Mexican Silver

Move Follows Oil Expropriations — Mexican Government Studying Best Plan for Paying Indemnification; Loan and Patriotic Gift Schemes

Washington, Mar. 27.

The Secretary of the Treasury, Mr. Henry Morgenthau, to-day officially announced abrogation of the Mexican Siver Agreement by the. United States. He refused to state if the action resulted from Mexican expropriation of American owned oil companies.

"In view of the decision of the United States to re-examine certain of its financial and commercial payment of the indemnities.

The Committee earlier had sui gested that the public make donations to the Government to assist in economic rehabilitation.

All workers' groups and the State Governors were understood to be in full support of the President in his expropriation decree.

Observers believed there was no prospect of any real modification in the expropriation orders.—United Press. relations with Mexico," Mr. Morgen-than said, "the Treasury will defer continuation of monthly silver purchase arrangements with Mexico until further notice."

Observers pointed out that Mr. Morgenthau did not flatly abrogate the agreement, apparently leaving an opportunity for resumption of purchases later if conditions warranted.

Text read from the printed page and cleaned; old type leaves the occasional error.

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