Evening Republican, Volume 22, Number 200, Rensselaer, Jasper County, 19 August 1919 — What Shall be Done With Mexico? [ARTICLE+ILLUSTRATION]

What Shall be Done With Mexico?

"W W 7 T HAT ahan be (lone wi,h Mexico? BL / Nobody seems to be ready with a complete program, but everybody seems of the opinion 'i ■ that something must be done " and done soon - In this age of the wor,(i clvil1 * zation cannot afford to let ,a <• country like Mexico—-±me. .of ..the garden spots and natural store- * 1 houses of earth —continue out of the line of march. It must join the procession and must keep up with the procession. So it is evident, aside from the question of the killing of American and British citizens and other nationals—human life appears to be cheap these days—that financial matters and economic questions will force action by the United States and the allies against Mexico, the outlaw nation. It is no exaggeration to say that, for months no other international problem, not connected with the proceedings at Paris, has been so fully discussed as the Mexican question, and apparently sentiment in this country and abroad is rapidly crystallizing. The exclusion of Mexico from the League of Nations was based on the ground that Mexico had been unable to give proof of intention to observe international obligations. Mexico has failed to observe these obligations in these ways Mexico's neutrality was more than tinged with German bias. Mexico has made no attempt to meet her foreign debt obligations. Mexico shows increasing inability to afford protection to- the lives and property of foreigners and nationals also. Mexico has given evidence of a studied and systematic attempt to put through schemes which would result in the confiscation of foreign property, thy most glaring example of which is the case of the oil companies, although the express and railway companies’ interests are in almost as great danger. It is no secret in Washington that renewed representations on the Mexican situation are being made to the American government by Great Britain and France. For several months these countries have been urging upon the United States the desirability of putting Mexico on its feet so that it might resume the payment on national and other debts and afford adequate protection to foreign lives and property. British citizens are holders of a considerable amount of Mexican bonds, both national and railway, while the French have extensive investments in the banks, which it has been charged were looted by the government under the guise of obtaining “loans.” Nationals of both countries hold extensive interests in oil properties. Many French citizens of moderate means invested their savings in Mexican bonds, on which they have received no interest for six years. In short, the Mexican situation has apparently resolved itself into this: The United States will soon be compelled to take Mexico in hand—unless European nations are to be suffered to intervene there in spite of the Monroe doctrine. In official "Washington the prediction is hazarded that the United States will acting as the mandatory for the League of Nation# , In congress the Mexican situation has ceased to be a partisan question. Senator King of Utah, a Democrat and one of the administration’s strongest supporters, introduced .the other day a very stiff resolution directing the secretary of state to report in full on Mexican conditions and what the department of state was planning to do in the matter. The resolution was immediately considered and agreed to. In the house Representative Gould of New York, Republican#-introduced a resolution providing for a sweeping investigation of American-Mexican relations and all phases of the Mexican problem since 1910. The Investigation would be made by a committee of three senators and three representatives, to be selected by the foreign affairs committees of the two houses. It was stated leaders of both the houses were consulted before* the resolution was; introduced, and that they are favorable to the inquiry. Ur Gould gave figures showing that 300 Americans had been murdered between 1910 and 1916; figures for. the three years following being unobtainable. All of which seems to indicate that President Venustiano Carranza of Mexico is in bad with Uncle Sam and the allies. It seems reasonably certain that he cannot much longer stave off a settlement of the grievances which have been piling up in the United States and various European nations because of the high-handed treatment accorded to foreign interests in the Mexican republic. «_ Also It appears that either Carranza must come tn terms with the United States and the allies, with acceptable guarantees that Mexico will meet

her obligations to these countries, or the revolutionists will shake him from power. In addition to the Villa rising there are not less than ten revolutionary movements in Mexico. There are those who say he would not last two weeks should he be thrown over by the United States. There is no gainsaying that Carranza is in a tight place, with the League of Nations planning economic pressure from without and a growing pressure from revolutionists from within. What are the investments of foreign nations in Mexico? No official figures are to be had, with the exception of the estimate prepared in 1910 by Marion Letcher, an American consul in Chihuahua, which is this: American $1,057,770,000 British 321,302,800 French 143.446,000 Various 118,535,380 T0ta151,641,054,180 Another estimate, prepared by an American corporation enjoying special facilities, totals nearly the same, but differs widely in the distribution of investments. It is regarded as the best obtainable. It follows: American $655,000,000 British -v...... 670,000,000 French ••••••••••••*•••.••• 285,000,000 German 75,000,000 «■ Spanish, Dutch, etc 190,000,000 Total $1,875,000,000 These figures are said to include the foreign investment in the national debt of Mexico and the distribution, as far as can be worked out, of the holdings of the securities of all companies operating in Mexico. The British government is demanding adequate protection for British subjects and property in Mexico, including specifically the oil wells the British government recently has purchased from British corporations, and also is demanding reparation for the destruction of British lives and property. The French government is making Similar demands and in addition insists that Carrafiza pay the interest on the $30,000,000 Huerta loan, which was floated in France but which has been repudiated by the present Mexican government The $30,000,000 loan constitutes the difference between the amount of the Mexican external debt, as estimated by T. W. Osterheld at $173,469,067 and the figures given today by the Mexican government, which are $143,472,125. Regarding the internal loan debt of Mexico, the Mexican treasury department says it totals $69,397,775, with interest to June 30 next amounting to $17914'672.62. The official Mexican figures fail to take into account the entire railroad indebtedness, guaranteed specifically by the Carranza government when the lines were taken over, and which is given as $290,564,532, United States currency. Nor do the Mexican figures include obligations other than railroads which the Mexican government? has guaranteed and which, therefore, constitute a valid claim against Mexico as a direct external loan. Chief of these is the “Caja de Prestamos” farm loan banks obligations which, with Interest to June 30, equal $31,506,742.75. Nor "does the official Mexican report take into account the “infalcificable,” issue of paper money, of which $80,000,000 at 10 cents United States currency, remains outstanding, making another $8,000,000, which the Mexican government upon issuing solemnly pledged itself to redeem, but which it later repudiated and which it will some day be compelled to pay. Nor does the official Mexican report take Into account the which the Carranza government took as a “loan” from banks of issue in Mexico City and which is now the subject of injunction proceedings by the Bank of London to enjoin the financial agent of Carranza in New York city from reaching credits in United States banka.

Also Mexico has been using the total income of the railroads and express companies as well as other public utility, establishments and has steadfastly refused to make admission of responsibility. Most of the American money went into Mexico during the 34 years of the Diaz rule, ending In 1911. The following figures as to Investments and damages are regarded as the most reliable. Cash Physical Invested. Damage. Railroads $150,000,000 $40,000,000 Oil 200,000,000 5,000,000 Mines 200,000,000 15,000,000 JLands and cattle. 50,000,000 10,000,000 Industrials and public service..... 50,000,000 10,000,000 Total ...$650*000,000 $80,000,000 This investment of $650,000,000 had grown in value until in 1910 it was said to be worth' $2,000,000,000. Damage claims aggregating $500,000,000 are said to be filed with the American state department. In this are included legitimate claims for additional losses due to the following causes: Destruction of new values created by the American energy which has now been driven out. Destruction of business through confiscatory taxes and uncurbed banditry, making operations impossible. Destruction of original values through unstable government. Destruction of entire financial and credit system of the' country through government decrees. Losses in profits which would have been made during present era of high prices. Potential damage which would wipe out virtually all values will become actual if President Carranza carries out his confiscatory “Constitution of 1917” and his subsequent decrees, including the following: Making foreign corporations or individuals incompetent to own property in Mexico unless for eign citizenship is renounced. Appropriating all cosporation-owned land, giving in return unguaranteed state bonds of virtually no value. “Nationalization” of oil, making oil subject to denouncement, when the entire oil-producing system is now founded on the principle of its belonging to the land itself. Prohibiting any foreign corporation or individual from owntag anything within 60 miles of the frontier or 30 miles of the seacoast. There are dozens of other interesting things in the Mexican situation which cannot be considered here. For example, a study of Carranza’s sayings and doings shows him to be a human curiosity. Is Villa alive or dead? Of course his name la very much in evidence. Nevertheless, who has seen him in the flesh for a year or more? He isn’t being interviewed and photographed—that’s sure. The personality of Angeles, who has cast his lot with the Villistas, is interesting. He is educated and personally attractive. , Then there is the national election coming on—with Carranza saying he is out of it and Obregon and Gonzales, rival talking nbw revolutions. - Logically, it wotfld seem to be sufficient to make Carranza adopt a satisfactory policy and give guaranty of good behavior. But can he guaranty? Can anybody In Mexico guaranty anything? It looks as if it would be necessary for some power to intervene. i *■ ' . And if the United States delegates the job oi establishing peace and order in Mexico—good-by Monroe doctrine! . -i;