Imperial Valley press., 1914-02-02

'NA
money abroad it has been obliged to
look for funds at home and so far
there has been little or no trouble in
getting them. President Wilson's
financial blockade of Mexico has
worked perfectly so far, but President
Wilson cannot prevent Huerta from
getting money from the people who
live in Mexico and have property here
and he is getting it in substantial
sums day after day in various ways
The simplest and easiest way for
a government to obtain money under
a dictatorship is by levying forced
loans. 1t is a quick and direct meth
cd and cannot fail where the power to
enforce the loans is absolute. But it
does not look we'll to have it get
abroad that forced loans are being
levied here and so they are usually
sugar-coated and go under the name OF
Especial taxes" or patriotic sub
scriptions" to government bonds.
In Cuernavaca recently 100000
was raised in a single day from mer-
chants and wealthy residents to pay
the troops of the garrison there. The
government called this a popular
subscription" to pay for protection
but the subscribers called it forced
loan. The same thing was done IN
Guaymas not long ago and in many
other places from time to time. Here
in the City of Mexico the banks all
subscribed to government bonds about
two months ago and some twenty mil
lion pesos was raised in THE way.
That was not forced loan, but the
banks did not want those bonds. They
were persuaded that it would be
good thing for them to buy them, not
on account of their value, but because
the government would appreciate the
favor.
In the state of Jalisco recently
special tax of 4 II per cent of the value
of all property, real and personal, was
levied. That was not a forced loan,
but it took the money from the peo-
pie just as effectively. Other states
are about to have these special taxes,
too, and the government is continu-
ally devising new means for raising
money from the people. The stamp
tax, which was very heavy even be-
fore Mexico had a revolution, has been
doubled recently. Every bill for mer-
chandise, every check to pay such
bills, every page Of an account book,
every receipt for money received in
sums exceeding five pesos, every real
estate transfer, every legal paper, ev-
cry telegram, must be stamped. The
doubling of the stamp taxes, recently
has netted the government many
thousands of dollars day.
''But Huerta hasn't begun" said a
wealthy hacienda owner the other day.
"He has just scratched the surface
when it comes to getting money to run
his government. ! live in Jalisco and
the extra taxes this year have cost
me $4,000. 1t is merely another
name for a forced loan, but forced
loans are necessary when a country
has war on hand. Huerta can raise
five hundred million pesos without
going outside of Mexico if he sets his
mind to it. / think he has been very
moderate so far, but if he is pushed
too hard, he may come down on the
people hard. He may even issue gov
ernment fat money There is no rea-
son why he should not if he cannot
raise money abroad. The United
States issued such money during our
civil war; why shouldn't Mexico? If
Woodrow Wilson is waiting for Mex
leo to go broke, he'll wait long, long
time-much longer than his prcsiden-
tial term"
Mexico is not going broke Mexico is
one of the wealthiest countries in re-
sources Of any in the world The vast
majority of the people are poor, but
the rich are exceedingly rich and
there is very large middle class in
comfortable circumstances. Every aft
ernoon in this city many hundred of
expensive automobiles parade up and
down Avenida San Francisco. No
where on earth do people spend mon
ey more freely on clothes, jewels and
amusement. The theatres are crowd
ed nightly. From fifty thousand to
one hundred thousand pesos is taken
in at the bull ring every Sunday. Mex
leo still has plenty of money for lux
uries and is not anywhere near the ne
cessity plane yet.
Huerta personally is very well off.
His tastes are simple and he is not
a money grabber. Gossip says that he
has feathered his nest very handsome