Evening star., 1921-12-25
MEXICO'S RECOVERY is AN AMAZING
EXAMPLE OF UNEXPECTED ACHIEVEMENT


citizens or Mexico's creditors
Il won't go into details, but today
That money has been all redeemed and
wiped from the surface Of the map
1t was stroke of genius. and put
Mexico upon her feet as IL by magic
Today the Mexican peso quotes al
1926. its normal value being so cents.
while this tremendous thing ha:
been in progress, Mexico has mad.
no new debts. She has paid cash-ir
coin-for everything which she has
bought, either outside or at home Ali
bills in Mexico of every sort, Iarg.
and small. must be paid in actual gold
or silver. with the amount OF slve.
to be rendered limited.
To-day Mexican business is more
definitely and completely on a gold
basis than that of the United States
has ever been at any moment in our
history.
|"0N top Of this achievement is an
other-the accumulation Of a
considerable gold fund to be used in
decided on or for the taking up of
coupons.
During the various revolutions
which for SO long a period kept Mex
leo in turmoil the banks were looted
almost to a single institution of every
dollar of their currency. Under the
plan which now is working out. which
ic indeed in
ment. every cent of this will he re-
turned to them. They are being paid
back these losses at the rate Of 10
per cent per month. | cannot say ex-
actly where this process is at pres
ent. but it soon will be completed.
There are not many more monthly
payments to be made.
Mexican money was as sad a year
ago as Russian money is today Mex
lean money is today as good as that
Of the United States. Yet we call
the Mexicans incompetent. With the
world all shot to pieces, Mexico has
been doing these things and in a
single year has gone long way to-
ward working out Of the woods
The present government is con-
stantly at work on larger plans which
without much delay will accomplish tn,
entire financing of the nations budgets.
external and internal, and which will
care for any and every claim of indi-
yiduals or nations for all damages
arising out Of ten years of revolu-
tion. Mexico's credit, when these
| things are done. will be among the
gilt edged credits of the world
THE only man who eventually Will
suffer will be the Mexican. If he has
lost through revolution he must grin
and bear il. He has no claim against
his government for devastated crops,
cattle driven off. burned buildings
any damage whatsoever. One of the
| contentious of the present American
administration was that there must
| be a mixed claims commission on
which all the creditor nations should
be represented.
Several months ago President
Obregon created such commission
/ and invited all the nations involved
to send their representatives. All
except the United States. England and
/ France did as he suggested. England
and France are holding off, waiting
! for the United States. We hold off
| because we require other things OF
Mexico.
"TN spite of the fact that we have
not co-operated. Mexico has gone
| ahead and made her pms. As soon
as we will intimate our Willingness to
| give her recognition. she will plunge
| at once into the task. Indeed. she
will do this as soon as we will indi-
| cate that we will cooperate in any
! reasonable way.
| The debts are large in aggregate,
though not large enough to sound
| impressive. now that ears have be-
come accustomed to the mighty fig
ures mentioned in connection with
the European debts which have been
! less adroitly handled.
| I'm all. the claims amount 10 some
where between S65. 100000 and $780,
! 900. 900. Mexico is anxious to dis
! charge all this Indebtedness. and is
quite able to do SO. She only waits
our word Prominent bankers of the
! United States are now at work upon
a plan for financing a bank of issue.
which materially will aid Mexico. In
! deed, it will solve the problem of her
| internal finances, for she probably
| could not continue indefinitely on
! cash gold standard. which is nui-
sance to every one concerned. To carry
coin about for large transactions is
most inconvenient.
! "Plans also are being worked out
| for the funding of all Mexican exter-
nal loans. Nothing but the handicap
! of the American refusal to accord her
recognition prevents the instant exc
cution of these plans.
"When recognition shall be granted,
Mexico. with her immense resources,
! will have no difficulty in securing at
a reasonable rate and on favorable
! terms all the financial aid which she
/ may need.
Some morning we shall wake out
of our sleep on this side of the inter
national boundary and find that Mex
| leo is one of the soundest nations in
the world financially
Copyright. 1871. by Edward Marshall.l
The Unstable Moon.