Semi-weekly herald., 1914-03-12
HUERTA's METHODS
OF MAKING MONEY

SAsoLb 1A0A>h Os-DCoRAbS
desperate attempts by Huerta to
build up some semblance Of the same
iron-handed sort of government by
which old Porfirio Diaz had ruled for
SO many years, the institution the
Indian dictator headed slowly grew
less stable. Huerta, however, took
conditions stoically. He still made
his usual round of drinking places,
gambling parlors and disreputable
houses and by the time he had been
in power ten months financial crisis
was at hand.
The Banco Central was forced, one
day, to close its doors because of the
rush of state bank notes. The state
banks were supposed to keep, in the
Banco Central, sufficient funds to en-
able the central bank to meet pay
ments on the state bank bills. But
railroads were out of operation; mon
ey could not be shipped, and, without
money the Banco Central was forced
to refuse to recognize as valid the
bills of the state banks. A run be-
gan on the bank This run extended
to other banks. Silver disappeared
ms gold had done months before. The
only money in sight was of paper and
half of this was made up of the
worthless state bank notes.
Huerta tried to solve the problem
by declaring that the state bank notes
were legal tender. 1t was estimated
that anyone who refused to accept
them might be arrested. But the
public was not put at ease. A run
was started on the Bank of London
and Mexico. one of the largest banks
in the republic. The bank closed its
doors. Huerta, to save the day, de-
clared bank holiday and, under this
subterfuge, the Bank of London and
Mexico, made only small partial pay
ments on the many claims upon it.
On January l, the sum of S32 2,000,-
900 was due from the Mexican gov
ernment to holders of Mexican bonds
This interest had been guaranteed by
portion of Mexican customs taxes
For many months Huerta had seen
part of the customs income set aside
to meet the interest and it was money
of which he was in sore need. The
temptation was too great for the die
tator to resist. He issued decree
declaring that the interest payments
would not be made for six months
And, at the same time, he seized the
customs taxes for his own govern
ment.
At the end of twelve months OF
Huertaism Mexico finds itself in 9
worse situation than it has been ir
for half a century. A year of Huer-
ta's dictatorship has meant the
slaughter of thousands of Mexicans
the breaking up of thousands of Mex
lean homes, the destruction Of mil
lions of dollars worth of mines, rail
roads, telegraph lines, bridges anG
businesses, which it had taken thire
of century to build or create.
The year has seen many Mexican
leaders either assassinated, imprison
ed or exiled. 1t has seen Mexico
debts repudiated; it has seen tn
country's financial reputation sinl
from the highest point to the equa
of the low esteem in which the finan
ces of the most unstable of Soutl
. America republics is held.
II The only bright spot in it all is tha
Mexico has daily seen the nearer ap
, proach and inevitable downfall O
{ Huerta. With all their silence, an
, they are silent through fear, the aver
: age man in Mexico hates Huerta an
: loved Madero. To him Villa is her
/, for whom he will wildly cheer just a
! soon as he knows that he can chee
! without being slain for his enthus
asm.
n The proof of this fact was definite
r ly given by the populAce of the cap
r tai when news of the raising Of tn
embargo on arms to the rebels
: President Wilson was first publishe
by the Mexican newspapers. Ant
{ American riots might have been eS
!. pec;ed by the populaee six months b
fore. But there was not suggestio
/ of Anti-American feeling in the cap
\ tai. The very silence OF the mssse
, showed that they favored the actio
! taken by the United States.
IL The next government Of Mexie
: will owe its existence to the Unite
4 States: there will be great friend
ship between the two governments. 1
. the end American business interests
c IL one cares to look at the matter i
that narrow light, will discover tina
it has not lost but has gained, no
only in Mexico but in all Sout
America.
The masses in Mexico today favo
. President Wilson'S policy They agre
Z with his stand that revolutions mus
end. They are beginning to see wha
President Wilson has preached an,