The Washington herald., 1917-08-25
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the Counhy's Best Newspaper.

There lis an undoubted disposition
among international bankers in favor
Of looking critically into propositions
which. II they prove acceptable both
to the bankers and the government
at Washington. would make il possible
TO loan to Mexico the large amount
OF money of which the Carranza gov
ernment Is in need. From an eco
nomic and strategic point OF view II Is
lregarded as sure to be of beneft &c
the United States IL Mexico be pro.
vided with sufficient funds 10 estab.
lish a stable government Although
Mexico has no credit. nevertheless the
n Republic possesses abundant resources
especially in oil. and IL in some way
these could be so utilized as to fur.
nish adequate security for the loan, Il
undoubtedly would be made provided
| there can also be assurances tina,
Carranza will be able TO maintain
peace in Mexico, and ultimately tc
suppress the bandits. II he accepts
isuch good counsel as Americans have
lnecently given him respecting finan.
fcial and fiscal arrangements there is
Sno doubt that our bankers will be
FTtlling to advance TO Mexico $780,
100000. or as much under that amount
Iss is asked for.
There still remains a doubt, how
l-e yer. about the ability of Carranza to
protect property, and there is dis
| abstraction with certain features oi
u Ne new constitution of Mexico. How.
ever. it is deemed not impossible tc
| Overcome these objections and infor
| m alton brought authoritatively to New
York within a few days justifies the
Inference that the Carranza govern
m ent will be willing and glad to fur.
nj sh satisfactory guarantees for tn,
payment OF principal and interest OF
tn e loan.
From the economic point OF view
| th ere would be unQuestionable ad
va ntages to the United States even a
| this time of war in the beg!nnin:
OF Mexican prosperity and the de-
| vd'Dpment Of the republics resources
An rerican capital would be tempted
| to, make large investments in Mexico
ana the capital which has already
be- n invested, especially in tbs OF
| territory, would be increased so tina
a high degree OF development ot
| Me- Eican oil properties would be at
tail ed. This would be of advanta g,
| not only to the United States, bU
also to England and indirectly tc
Fra nee. Again, it is the feeling tha
/ IL fvrarious obstacles that now stanC
in 1.-THE way OF loan to Mexico car
be eliminated and if the Federal gov
ernrnent should give its approval t,
the placing OF the Mexican loan here
a transaction Of that kind would q
i g. H.. - awa
Of the bitter feeling toward the United
| STAKES that was prevalent in MeNict
whae the republic was in a state o.
turmoil
| 1t, may be that in the fall or early
winzer Mexico will obtain from th'
| Unsied States the money OF which sh'
stands in such desperate need for III
| establishment of n strong government
Tas war in Europe did no more thar
to hiaEten the day when there woulC
be q authoritative announcement tina
the production of food animals in tn
Unite 4 States was so rapidly dimin
ishint; that unless there was a chang
| We hould be compelled to impor
meat in great quantities from Sout
| America ard from Australia. Tel
| years ago James J. Hill spoke witt
| impressive monition OF the necessit!
/ for a. great increase in our supply o
meat. He not only spoke but he acte'
for he imported at his own expens
breed! ng animals from Europe wit
intent thereby TO increase the suppl.
Of meat animals in the Northwest.
But before Mr. Hill spoke P. A
| ValerF me. one of the great author
/ lies or his time on meat production
| visited Argentina for the purpose o
securing vast reaches OF catt
ranges. so that the company Wit
| which he was associated might rel
with confidence upon imports Of bee