Saturday news. (Watertown, S.D.) 19??-19??, 1914-08-06
The Debts Of Mexico;
Who Shall Pay Them?

NEUTRALITY-SUSPICIOUS.
The menace OF foreign complica-
tions' is seen by some Observers of
the Mexican situation. who say they
are sure to arise III, In the words of
the Brooklyn Eagle, there is any
tampering with the part Of the ma
tionaI debt incurred by Huerta while
de faeto president not recognized.
indeed, by the United States, but rec
ognized by European powers" That
there is d great temptation to repudi-
ate this Indebtedness The Eagle adj
mits, because Htha proceeds were
used or were intended to be used, to
kill constitutionalists, but it has
every confidence that Washington will
make any provisional government
that succeeds the sCarbajal make,
shift" meet this obligation in full. AS
to Huertass other engagements, in
particular his concessions to nationals
of foreign governments, we learn
from Washington dispatches that the
United States does not intend to rec
ognize as valid any concessions
granted by Huerta, even those to Am
orleans. The debt, however, is al
different matter about which the
Brooklyn paper says that Mexico,
poor as she is, can not afford nj
tional bankruptcy, and Il adds.
The best historic parallel for the
Kaleidoscope changes Of form of gov
eminent In Mexico is offered by
France. The revolution that over
threw Louix XVI. and hadsto fight all
Europe could not besnice about pay
ing all the annuitfes that kings had
ilavished on favorites. II scaled down
such charges. 1t refunded debts. 1T
made some debts payable In assignats
of debased value or mandats which
were little better. But the policy
was not one of reputation, And when
fall of Napoleon it accepted all the
fall Of Napolen it accepted all the
obligations incurred by the republic
and the empire. Since that time
there has been no attempt at repur
diation in France, and French credit
is superb.
Mexican rebels will do we'll to
study the financial history / France.
1T offers the very best guide for them
when they come into power. II its
| guidance is accepted, the United
States will not have to interfere to
protect European bo%ndholders."
AT the same time we read in a
Washington dispatch of the New York
Tribune that the French government
of today is becoming concerned about
the interests of its nationals in Mex
leo and such agitation. is considered
as "a ~forerunner of general uneasi,
ness among the European powers
This is made adoubly certain the
Tribune correspondent tells us, be
cause Of Secretary organs revelation
that the United States Intends tt
divide Huerta's regime into two parts
SO far as the legitimacy Of his &C
tons is concerned" and the writer
adds.
Secretary BTyan's brief statement
= = indicated that the administration
would not approve Q support claim!
growing out OF any action by Huert,
since October 10, 1918. IT was oil
that day that Huerta dissolved con
gress and assumed the powers OF /;
dictator, s~uspending all other part
of his government. 1t is understood
that at that time tie United StateI
informed Europe of its intention n,
longer to consider legitimate or bind
ing any action of Hnerta.'
In this connection the Wall Stree
fJournal calls attention to the an
nouncement of General Carranza tina
he proposes to ignore the debts o
Huerta, and observes that it raises
one of those disturbing problems
which are likely to prove more diff
cult in the ultimate solution of tht
Mexican situation than the clash o
arms Consequently this jpurna
points out that:
The government Of the United
States may well proceed deliberateI,
lin the policy of extending further fay
ors to the constdtutionalist4 unit
something is learned of the lfmita
lions of this policy Ct throwing over
board the obligations of the HTerts
government. 1t will probably he ad
mitted by General Carranza that OBJ
Legations incurred by General Huerts
for the purpose Of paying interest oil
the old Diaz loans should be excluded
from the policy of reputation, Othel
items may be difficult to adjnsI
to the mutual satisfaction of the: par
ties in interest.
In SO far as local partizans of Hn
erta voluntarily advanced money Il
maintain his sway, there may be
colorado defense for the policy 81
Reputation. The difficulty is, haw
ever, even in these cases, that it car
probably be claimed, and pretty near
" established, that advances wers
made under terrorism, which would
constitute a legitimate claim for dam
ages against any administration that
claims to be responsible for the or
derby government Of the republic,
Along these lines inextricable laby-
rinths open Of legal contention and
diplomatic correspondence" Literary
Digest
DOING THEIR DUTY.
Scores Of WatertoWn Readers are
Learning the Duty Of the
Kidneys.