The Birmingham age-herald., 1914-05-01
FIRST RATIONALE
 MONTHLY REVIEW
Mexican Situation Has Ab- sorbed Business Attentions
WOULD HELP TRADE
War Would Stimulate Demand for FOodstuffs, Live Stock and Cot ton Goods-Railroads In
 East Suffering

The First National banks financial and Commercial review, dated May l. is as follows:
 During the past two weeks the com plications with Mexico have engrossed public attention to the exclusion of all most all other matters, and for a few days it looked as though actual war. whether declared or not, was inevitable. At this writing. however. it seems that there is a possibility for success in the negotiations undertaken by the diplo-- matic representatives of Argentina, Bra gil and Chile, as our government and both the warning factions in Mexico have agreed to the mediation.
 ''The disturbances in Mexico for the past fl months have been of such a char acter and have involved so large a loss of life and property. that the United States cannot be expected, either in jus tice to it's own citizens or with proper re- spect to it's obligations to other na- tions under the Monroe doctrine, to stand idly by and permit such conditions to con- .tinue. Our troops now occupy Vera Cruz, the principal seaport and port of entry of Mexico, and 1t seems probable that they will remain for some time to come.
 Protectorate May Result
 Our government will doubtless demand the establishment of an adminstratio in Mexico that it can recognize and 1t seems to be the general opinion that if war is , averted we will be obliged to exercise a kind of protectorate over that country for several years until order can be com pletely restored. The alternative seems to be march to the City of Mexico and active military operations throughout the so-called republic While always disclaim- ing any intent to acquire additional ter ritory, the United States has, for more than loo years past, beginning with the Louisiana purchase, been an annexation 1st on large scale. By our treaty of peace with Mexico in 1S4S we acquired the territory now included in the states of New Mexico, Arizona, Colorado, Ne vada, Utah and California and but for the slavery issue, which was acute at that time we would have doubtless taken over much territory south of the Rio Grande, comprising the Mexican states of sonora, Chihuahua. Coahuila, Nuevo Leon and Tamaulipas. Should the present dif- ficuty cuminate in war, it is safe to assume that these states at least. if not larger area, will be retained per- manently by the United States. They are 'ery rich in mineral resources and are sparsely populated, and offer a splendid field for development by American capi- tai and enterprise, under stable govern ment conditions.
 War and Business
 The immediate effect of war upon bus- mess wou.I probably be beneficial. The demand for live stock, cotton goods and ioodstuffs would be greatly stimulated, ana the market for coal and iron might also be benefited to some extent.
 The war with Mexico in 1S46 occurred at period of commercial and industrial depression similar to that now exicting. The panic of 1887 had been followed by several years of business distress which even the Walker tariff of 1S42 had not been able to alleviate. Conditions grad ually improved during the course Of the war and shortly after it's conclusion inc discovery of gold in California gave inn petus to boom which la sted for sev- eral years.
 When the war with Spain broke out in April, 1898, we had not recovered from the panic of 1893 with its after math or general stagnation, and the ef- fects of the Dingley traiff of 1897 had up to that time proved disappointing 10 It's sponsors. A sharp revival fol- lowed the declaration of war stocks : began to move upward and by the close of the year We were well launched into what proved to be the stest era of prosperity the country has ever known and which continued until the fall of 1907. In the opinion of many like upturn would occur in event : of actual hostilities with Mexico though 1t is pointed out by some thai : the policies of the present administra- s ton are very different from those of 5 the one in power in 1898. The protec : tive principle was recognized in the , tariff then existing and attacks on corporations were not then popular. Tt is still too early to pass judgment upon the Underwood tariff law, as it 1. Is difficult to analyze and correctlv an