Evening star., 1919-12-31
SUGGESTSFORE|GN
EXPERTS CONTROL
LOANS TO MEXICO

AS panacea for the ills of Mexico.
| the big financial interests in the
| United States are seriously consider
| ing suggestion which, if carried out.
| would once more place Mexico on a
safe financial footing. and eliminate
the necessity of armed intervention.
A prominent American banker, who
! for more than twenty years has held
an interest in one of the largest
banking institutions in Mexico has
advanced the suggestion that the
handling of funds loaned to Mexico
by American financiers should be con-
trolled by a commission made up of
foreign experts in finance. This body
would dictate how the money loaned
the Mexican government should be
spent.
May Approach Carranxa.
Careful consideration of the sug-
gestion is under way, it was pointed
out today. and recommendations may
be made in the near future to Gen.
Carranza to the effect that il his gov
ernment wants American financial
backing ne will have to submit to the
terms OF American bankers and allow
the money to be disposed of by a spe-
cial commission of foreigners.
Under the present financial system
in Mexico, it was said, American
bankers are afraid to take a chance
in lending their money. They re-
fuse pointplank to Tend money to a
bunch of bandits" it was pointed out
Another reason advanced for the un-
Willingness of American financiers to
sink their money in Mexican loans is
because up to date they have had
no protection. and they do not feel
that their generosity would be upheld
in Washington's official circles.
Oil Interests RestIve.
1t was learned today that Ameri-
can oil interests in the Tampico dis
trict. who are tired of being maced
for tribute by the Carranza govern
ment. Pancho Villa and a horde of
lesser bandits" are contemplating is
suing an ultimatum to the Mexican
authorities that, unless better protec-
tion is accorded American oil prop
erty, the huge oil wells may be aban-
doned.
Were such drastic action to be
taken by the oil interests. not only
would the Carranza government be
deprived of monthly sum approxi-
mating 100000 pesos. or about
$5O0.0o0, but the reserve supply OF
fuel oil for american consumption
would be greatly reduced.
1t is said that the taxes collected
from the American oil companies by
Mexico equals approximately one
half OF the total revenue of the Car
rama government. Persons who have
made a close study of the Mexican
situation declare that il the oil COM
panies pack up bag and baggage, and
halt operation of the wells in the
Tampico district. MeXico's financial out
look will be decidedly gloomy. Some
go SO far as to predict utter finan-
cial ruin for the country in the event
of such a move on the part of the oil
that if Mexico continues the practice
OF imposing heavy taxes upon oil
property. without properly protecting
that property against the incursions
Of bandits. who, in turn, demand
baksheesh from the oil men. she will
be killing the goose that is laying
the golden egg.
Mexico Called Bankrupt
Reports submitted to the Senate
subcommittee investigating Mexican
debt of Mexico is approximately 500.-
900 pesos greater than she can pay
interest upon under existing condi-
tions of administration. In other
words. it was pointed out as the re
suit Of the reports. Mexico today Is
bankrupt to the extent OF about
half billion dollars.
Under the Diaz regime, IL was said.
the estimated expenditures ranged
from 10000, 900 to l10, ,0OO. 900 pesos
while the Carranza govern
ments's new budget calls for ex
of 17S,000.000 pesos. with
approximately l32.oo0.oo0 pesos Of
revenue in sight.