New Britain herald., 1916-06-27

ican campaign were to be prolonged; for the present the government could requisition war material now being manufactured for European govern ments. Industries supplying mater ials for warships would be affected alsO since new construction would be rushed on account of war conditions. Railroads would profit from the army's demand for increased trans portation facilities. On the whole, the general tendency would be to pro- long the period of business activity which has already owed so much to the war in Europe.
 That the remoter effect upon Amer ica's economic position would be good cannot now be affirmed If there is tQl be a reaction sometime from the pres ent abnormal prosperity, when Eu- rope settles down to the ways of peace and industry, it would as likely as not be the more severe because of the ad- ditional momentum to the present boom caused by heavy government expenditures on Mexico. This is not saying. of course, that the United States along with other countries would not profit in the end by having order restored in Mexico and a stable government established. The natural. resources of that country in oil fields, mines and ranch lands are very rich and their future development under favorable conditions would mean the great expansion of commerce between the two countries. In one way, how ever, the United States would be pro- noting the interests of European creditors Of Mexico in assuming the task O. restoring order by military means, The foreign debt of Mexico. held largely ir England and France, amounts to nearly $20O, 900. 900. This is aside from the large sum that will have to be paid, probably, by the Mex jean government that gets firmly es- tablished on account of foreign claims for damages suffered by foreign sub iects during the years of civil war. Once in control of Mexico, the United \ States might have to use its own credit in placing a new Mexican ad- ministration on it's feet financially; for one of the darkest features of the present situation is Carranza's utter inability to borrow money in New York for the purpose of establishing his government on a firm basis Such a contingency in financing the new order, however, would involve no disturbance. since Mexicos natural are sufficient to make it's credit good, provided the stability of it's government could be reasonably as sured
 All things considered. American finance is but little shaken by any turn in the Mexican situation that points toward the occupation of the neigh boring country. And this prob- ably would be true if there were not heavy American investments already at stake in Mexico-the result of the Diaz period of capitalistic develop ment Finance, in brief, is strongly in favor of the enterprise of Ire ducing Mexico to order" from all the points of view from which 1t sees the problem. It even welcomes in- tervention for the reason given by Harris of the National City bank of New York, in a state - ment printed in the New York Jour nal of Commerce: "Tf we have to de- velop a big army of occupation, so much the better-we need to develop 1t and maintain it hereafter. and no better condition could exist for doing so." Business likes to see a large army developed, and it is clear enough for the purposes of this article that business has little aversion to all the var on our southern border this coun- ,ry could conveniently stand.