The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1913-04-12
MEXICO IS UNABLE
TO BORROW MONEY
Failure to Get Recognition From
U. S. Hurts Nations Credit

Mexico city, April I2.-The failure
of the Washington government to ac-
cord recognition to the Iiucrta admin
iStrotion created grave anxiety ia the
Mexican capital, condition which
"as noticeable, during the last week
IN March, even in government circles
Under some circumstances Washing
tons GOODNESS would not have been 80
serious, but with tho impoverished Il
state ot the national treasury common
knowledge the distant attituue OF the
uited states, according 10 the views
If Ncil-'ulurmcd observers. assumed
almost d., proportions of a national
menace. popularly it was assumed, and
in high government Offices ii was nos
denied, that one little friendly noG
from Uncle Sam would have rendered
tho work ii tnc countr! inancicrs
WHO are trl ins to borrow 100000, 600
pesos tfoo,oooo0oJ comparatively sim
pie.
Even the armed enemies of the gov
crnncnt concede than President Huer-
ta Will pursue a determined policy IN
restoring order. but his closest per-
aonal friends admit his job is going to
nc increasingly difficult unless some
means can bc found for rcplcnishing
th" national funds, \ month after
,lucrta was made president there was
Lut enough money pn hand to pay tho
expenses of the government for any
but short period. lie and his cuuu-
scllors continued making their plans,
however, on the assumption that the
money necessary would be forthcoming
i'm due time from some source or
other. Iut il has not Vet appeared,
aud people ar" now asking whence il
can bc expected
There is Of course no deny ing thu
fact that the Withholding Uf Americas
recognition makes it more difficult for
Mexico tomorrow. Local bankers do
Got hesitate to declare that If tn,
united States persists in turning her
back on M"NicU. money loaned To the
Hucrta government would be a risl;
not lightly Ia be assumed, ana that
the possible overthrow OF lIurrtn
would leave the holders of tie new
bonds iu IN embarrassing prcdicamcnt
Two Bond Issues Needed,
RcalziHg the delicate situation in
which tncr country IS placed few
Young mcu and women attempted to
inaugurate popular movement to
supply the nation with funds from the
peoples yavings. Eut the amounts Of
tered have been sums like $50 or less,
aud it has been pointed out to these
patriotic aud sacrificing persons
that their ,Gorts are not after all
practical
The government has asked Congress
to authorize two bond issues. one for
10000 OOo pesos Gloooo,Ooo) and the
SECOND rpr the hundred million ($5o,-
Oo0O0O) II is proposed To use tn =
bonds ui the yl0,oUO.oo0 loan in pay
inL ind"muitics fol DAMAGES incurred
during thc revolution of l2l0-ll. for
covering subventious promised rail-
roads. Tor meeting obligations in COM
plctiug public works. and similar pur-
poses what the recipient does with
% houd So ISSUED is a matter OF mdit-
ference to the government Tie may
hold II and collect the . per cent in
tcrest, dispos, of II FOR what b" can
get now. or sell it when the country
once arain is at peace aud the prices
of securities couscqucntlN higher.
The biz loan, however is for the eN-
press purpose of getting mono> cash.
For this ruruign bankers viii have to
be solicited When lluerta was given
thc presidency there was a popular be
Continued on 5th Page 5th Column.