The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-23
Financial Crisis Facing
Administration in
Mexico.
SEEKS NEW GROUND
OF NEGOTIATIONS
With Funds Gone and Army
Mutinous, and Foreign Pres
sure Brought to Bear, Gov
ernment Shows Signs of
Yielding to Wishes of
United States.

washington, August 22.-Thc Huerta
administration In Mexico may recon-
slider Its rejection of the American pro-
posni to restore peace In Mexico and
arrange new basis for negotiations
with the United States before next
tuesday. Strong intimations to this
effect reached official Washington to-
night, along with the information that
the financial condition of the Huerta
administration wns such that "A crisis
was imminent.
Should the Huerta government decide
to enter into new basis of discussion,
withdrawing its contentious as ex-
pressed in the Huerta note replying to
the proposals communicated by Mr..
Lind, President Wilson in all prob
ability will not read his message TO
both houses Of Congress on Tuesday, as
he intended.
The President made no effort TODAY
to prevent the House from adjourning
until Tuesday. 1t had been supposed
that he would read the message Mon
day and would ask the leaders in Con-
Rress to arrange joint session. Fall
was interpreted in official circles as
meaning that the United States had
practically given the Huerta govern
ment until Tuesday to make up it's
mind finally as to what it would do.
Will Not Recedc.
1t is positively reiterated that the
United States will continue to insist
upon the resignation of Provisional
President Hucrta or an announcement
OF his Intention to do so as we'll as his
elimination from the presidential race
In the subsequent election.
President Wilson spent the dav
studying the notes exchanged by Lind
and Huerta and preparing his message.
White House officials announced that
no copies OF the document would be
distributed in advance to the press, as
has been the custom for years, as it
was desirable to keep the document
abreast of developments to the last
minute. The message may be modified
by dispatches received Tuesday, and
there also Is the possibility that the
President may find 1t expedient TO post
pone delivery of the document.
Reports from Mr.. Lind declare that
his relations with the Huerta officials
nre more cordial than before, and that
the Huerta officials manifest willing
ness to find some new ground for a set
tlement.
European diplomatic pressure, 1t is
known here. is quietly at work in
Mexico City In effort to convince
Huerta officials that the policy Of the
United States is being approved abroad.
The failure of the Huerta government
TO obtain funds in Europe through the
nonrecognition OF the United States is
pointed to by the diplomats as likely
to continue, pending more respectful
consideration of the American pro-
posals.
Faces Mutinous Army.
1t is learned also from authorita-
tive sources that the Huerta govern
ment is facing IL mutinous army, dis
because pay has been
forthcoming for weeks.
1t was apparent tonight that Wash.
ington officials expected word from
Huerta before Tuesday. and that un-
less II comes the notes will be pro-
claimed to the world through the Pres-
ident's message, showing the efforts of
the American government to bring
about peace. along with suggestions
for n definite line OF procedure by tho
United States In the future.
White House officials. however, wero
confident that the situation would un.
ravel itself They would not disclose
upon what their optimism was based.
but 1t is believed that reports from Mr..
Lind to-day were largely responsible
for the confident feeling.