New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1920-08-29
De la Huerta Is in Full Con
troll Of Nations Finances.
Railroads and Dominates
Industry aud Agriculture
Rules the Oil Production
Failure Of Assembly to Enact
Laws Makes Authority of
Government A b solute
By George E. Hyde

nation and is required only to give an
accounting to Congress.
The National Assembly. however,
has no check on him, and any action
which it might take would have to be
in the nature of an impeachment. This
power is technically known as eek
traordinary faculties in the branch of
finance The measure, while scarcely
within the grasp of the Anglo-Saxon,
10 not new in Mexico and has been
adopted by every President during the
last fifty years at some period or other
OF his tenure Of office.
1t takes fttle imagination to visual
lze the domination which this gives tho
Ia1e.-i Executive over the nation. The
right to fix taxes alone would place
in his hands the power to dominate the
industrial and agricultural develop
ment of the country. He has this
right, including domain over export
and import duties. and in addition has
the right to forbid the expectation of
such articles as may in his opinion be
necessary to the welfare of the people.
1t is this feature which in the past
Presidents have been most frequently
accused Of abusing. Many instances
have been quoted which we're alleged
to show that the Executive or his Min
lister Of Finance had deliberately raised
CT lowered the bars to favor friends.
Powers Greatly Abused
Mexico runs her finance under q
bulge. system, but under existing cir
cumstances the President has the RIGHT
to change any items by decree. and
does so when occasion dsraras Tna.
such . procedure g;,,os nn,,s..','';..- I.S's
much ahnso u soIf .id,' V0Ili's Ioi
ono Of 80 obo,.rso. '1'e'''' IN TACT
lato p.or;(l,,+ C, 80 tit'"e against the
,,sod ~ 49,, '1n@a was that he
thseo rou.arr e1 e"e natioh under
- 80 - nance the campo lGn
VI isiaclo ioA'.ias Tor President. Sew
ga. o'-'Ii''S o. 'he carranza govern
'"Si'1 are no" lnder Indictment for mis-
appropriation OF government funds.
Despite the dangers of this system
Is SAFE 10 say that Mexico could NOT
D. run * Dresent IN any other wav
me last MeNic car. Congress adiournci
without hSNirg enacted a single njcce
OF ieSlSla.io which would make an al
minlstration Under approved laws nos
slbie. ct Last Two Of the industries
Vitai to the country arc without leris-
latlVe contro -.ro banks and the ne
tfc.eLm prot Ion AMI export. I,eGjs-
lauon coVes ng both was submitted to
the last congress ~ both Carranza and
De Ia huerta, but no action was taken
p.,,.;
~ '"'.'s ~ 9'e'' -haaeqAate
me banking system Of nation can
not De aAoNed 10 run as it ploascs.
ana 'ne only alternative was the is
stance OF fIes icratial dccIces to hold
good une.l laws could be enuc1ed. Such
Gecfees were issued by Cartanza and
nave oeen retained by De h Huerta,
Canita has lnon rel,,cta54 .ei>l'
self IN the hands of the Mexican eov-
eminent, which could change the laws
under which it worked at any moment
and Tor any cause The banks of Mex
ice had faced the confscation of Their
metallic reserves once before and thew
had no desire to undergo a similar ex-
perience again.
Consequently Mexico is TO-DAY with
out an adequate banking system and is
getting along as best il can until
things Become somewhat more settled
There are no banks of issue in the
country and everything is being done
CT, metallic cash basis. The lack of
fexibility of this method is a great
handicap to business and the unsettled
condition Of the country prior to the
last few weeks made any Venture COW
ering any distance hazardous.
A bankino measure will he submitted
to the next CONGRESS- The nronosed
system probably will call for 9 iinol a
bank of issue directlv under ooveTn-
ment control II nrobabIv win act as
6 clearing houses in addition to ito
right of issue and NAV he simnlv q
CONSOLIDATION of existinq institutions
IT, PROPOSAL has met with some onno-
sition. but the present Executive ;s
determined to give it trial at least.
Oil in p,esident,s Cor+ro,
Tho o1,,a.;o - ..1.
,raa ne p'o9 90 ~, VI petroleum IS the
~, Vi an NeHlcah lnuuslrles TO-
10y ne VolsIlVu1loh OF I'l' required
t NE pie'a'lFe ieSlslatlon 10 carry out
ene lunGa'"e"'ai principles when 1T
son'aineu regarding petroleum, but 1t
was iouho Impossible during the Car
.".'Aa aolh!hls'ralon TO OBTAIN the en-
I 's:I 81 any petroleum law Presl-
uensla' uecreeS were promulgated to
supply the deficiency until such time
49,, r., 20 l"ou'u "Gl ana lt.ls uhder
sneln lhat the petroleum industry is
INV " ,I belng PRESIDENTIAL de
t h'oeS 'Iey can Oh course, be abrogated
ps l,e resident, and this leaves in his
t'ai H. re coh'rol OF tho most power
i',esS III 'he country
,,.o,.n NY p1sioIeu"i ana banking measures
w., T.ie ol'y Two OF several bills which
rae ,"s' GonsreSs ADJOURNED without
p re- TX Asrarlan legislation covering
amonnt n,b G.t', 1 -. ianu ana hxing the
M