New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-27

FL Paso, Tex, Aug. 26.-Mexico's
troubles, instead of decreasing with
the passing Of the international crisis
resulting from bandit activity, are be-
coming more serious. Despite the
claims Of the Carranza government that
the government is in complete control
of the situation, reports from reliable
sources reaching the border show the
gravity OF conditions in interior
Mexico
The latest danger to threaten the
CRrranza government is the Legalista
movement, composed Of leaders of FAC
tions which always have opposed Car
rama rule and who now have allied
with them the best element Of the
Villa faction. Originally the Legalistas
were old Cientifcos, men of money who
were driven from Mexico when the Diaz
government fell and who, despite their
great wealth and extensive holdings in
Mexico. have been forced for five years
to abandon their property and seek
safety on the American side or in some
neutral European country.
Legalistas Have Big Fund.
This movement, although an appar-
ent failure along the border, has
gained great strength in the interior.
Its rallying call for restoration OF
peace through the restoration of the
finances of the country, is an attrac-
tive one to people who have had no
money with buying power for more
than two years. Back OF the Legalista
movement, according 70 leaders on the
border. is the combined wealth Of all
the financial interests of the Cientih-
cos, the Maderos, the Terrazas hold
ings and the clergy.
One hundred million dollars in gold
il is claimed, could be and really has
been made available for putting the
new movement on its feet, and the
power of money is being shown IN the
states of Central Mexico and IS being
felt by the Carranza government, which
has no money with which to combat the
financial campaign of the new revolu-
tionsts.
Carranza Money Worthless.
Financially the Carranza government
is in a pitiful state. To-day no issue
Of Carranza money has any value in
banks Of border towns. In Ii Paso,
where few months ago Carranza
currency Of the old issue was IN de-
mand at from to 3 cents, no one now
will handle it. It has no quotation IN
local banks, and is not handled by
Mexican money dealers here or at any
other border point. The new issue of
Carranza currency which the govern
ment of Mexico forced upon the people
at 10 cents on the dollar and attempted
to hold at that price through stringent
enforcement of laws compelling It's ae-
ceptance now mas passed out of issue
on the border. It's last quotation IN
border banks and among border money
dealers was two cents. 1t dropped two
weeks ago to one and a hall, and then
TO one cent on the dollar, and for a
week it has had no value and is neither
sought nor sold.
The only money in Mexico having
a value now, exclusive, of course, OF
the silver pesos and gold monoy, and
the nacionalcs, or national bank bl4is,
are the state bills. This currency, hay-
ing back Of it the promise of the sew
eral states 10 pay, issued irrespective
OF what government is IN control ana
having no bearing upon or relation 10
the national government, IS worth from
u TO Is cents on the dollar. ne ma
tional bank bills, with gold and silver
are worth 70 to 70 cents
and are very scarce, the banks not no"
issuing.
Money Aids Propaganda.
Taking advantage of the Carranza
financial paralysis, the
Legalistas are scattering among the
people. where il will do the most good
IN creating sentiment and in gaining
recruits. silver and gold money, Just
CROUCH to make an impression, but
enough 70 show the people that II the
Carranza government cannot supply
money the Legalistas can, and the
people Of Mexico wish money now
above everything else. With the Car
rama money, though they may have an
I'll -
oniy a handful of corn. With the
| egalista mercy they see that they
buy. not only corn, but meat, and
clothes, and medicines, which they so
,orely need, and the people are becom-
ing Legalistas.
In the state of Durango and in
Zacatecas. lower Coahuila and along
he west coast. the Legalista move
nent has grown during the past two
weeks into formidable proportions.
Already Legalista armies are IN the
ield. and although the Carranza official
reports refer TO engagements with
[,eealistas as "skirmishes with bandit
bands" il is known that in a number
If fights recently the Legalistas nave
-epulsed the Carranza forces and have
made rapid progress in controlling
erritory which CarranZa forces here
ofore have been occupying.
Legalstas Against Bloodshed.
The appearance near Aguascalientes
few days ago Of band Of nearly
90. wearing on their hats a band
Inscribed "Legalista." has indicated a
pread of the movement TO the south. .
The band stopped train and took
rom il twenty-five or thirty Carranza .
oldiers. There was no attack on the .