The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-06-17
MEXICO To
PAY UP HER
BACK DEBTS
Lawrence Sees Good Eff
feet in Pact With
Bankers.
BY DAVID LAWRENCE.

Copyright, 1922, by The Argus)
Washington, d. c., June IL
Agreement between representatives
of the Mexican government and the
bankers committee representing the
investment interests of the United
States as we'll as European coun-
tries is the most important in Mexi-
can-American relations in IL years.
1t cannot but have a far-reaching
effect on the whole Mexican situa-
ton.
Not since the days of Diaz when
the Madero uprising first tore asun-
der the threads of Mexican finance
and started an era of financial
chaos has there been such optiu3-
ism as today. For Mexico's decis-
ion to pay her back debts and re-
sumo interest payments is some
thing which gives more evidence of
the stability of the Obregon gov
ernment than a score of protesta-
tions in the subject of capacity to
govern and earn recognition.
Bankers Back 0bregOn.
Whether it is true or not that the
financial interests in the last II
years have been influential in di-
recting the many governments
which have become estranged from
Mexico the truth is that the set
tlement reached by Finance Min
lister de la Huerta and Thomas w.
Lamont of ]. P. Morgan and com
pany as the representatives of the
International bankers who hold
Mexican obligations, will have the
effect of ranging the bankers on the
side of the Obregon government in
its bid for recognition.
The crux of the situation, of
course, is in Washington, for until
the United States government
makes up its mind to recognize the
Obregon administrau ton the rest of
the governments of the world will
withhold action. Similarly the ex-
tension of recognition by the Unit
ed States will mean instantly the
recognition by the whole world
Mexico's readiness to put her
financial house in order naturally
will make it difficult for the Amer
ican government to delay recogni-
ton unduIy, for after all the nor
NAL reQuirmentS are TO maintain
order and show a willingness to
satisfy international obligations.
There remains only one obstacle to
recognition. 1t is the ambiguity
of the Mexican constitution on the
subject of land titles granted be-
fore the constitution was adopted.
Mexico has insisted that the su-
preme court interpretations make
ii clear that the constitution does
not affect contracts and titles prior
TO 1917.
The American government is not
satisfied with the assurances given
and wants an explicit statement to
that effect to be embodied in a
treaty. This the Mexicans have for
one reason or another-mostly ma
tional pride-declined to do. But
it is pointed out that the agree
ment on financial questions reach
ed in New York involves questions
on which Mexicans are far more
sensitive than the making of a
formal treaty.
Seek Moral Support.
The main object of recognition
is to get the moral support of a
government in country where
walls IudN De Sought IL us
agreement reached in New York is
The foreTunner-as inevitably ii
must be-of the extension to Mex
leo Of financial aid the question OF
recognition will become academic
Ihere is on the other hand little
chance that Mexico will be given
loan until the United States gov
ernment obtains the assurances il
seeks. For American bankers have
promised the department of state
mat no loans would be floated fol
me benefit of foreign countries un-
VI the government at Washington
mad an opportunity of interposine
an objection. II seems certain thai
while the bankers are glad to have
mad the opportunity to clear VI
past Indebtedness they will not i'm
mediately leap into the realm ot
larger financial actions for the fu'
Iure until they know the United
states government intends tC
tnrow the full weight of its influ
ehce to the support of the Obre
gon government whose life will bt
snort lived without financial aiC
as we'll as recognition