The Birmingham age-herald., 1922-12-10
MEXICO M0RE AT
 PEACE THAN FOR
 MANY YEARS PAST
Two Years of 0bregon Find Economic Situation of Ma ton Worse-Revolution-
 iSts Under Control

f Mexico City, December s.-A mili- tary situation that is decidedly bet ter; an economic situation that is without doubt worse, and an inter- national situation that is in status quo. These are the terms used by impartial observers here to describe conditions in Mexico as they were on December l when President Obregon completed the second year of his ad- nlfnistratiGn
 Combined optimism and pessimism are expressed by persons who during the past 24 months have watched General Alyaro Obregon, the reyolu- tionary successor of President Car ranza, unfold his program of national reconstruction, which according to him and his adherents is to lift Mex leo from turbulence and rebellion to a place of dignity and credit among the nations of the world.
 More at Pence
 It cannot be denied that Mexico to- day is more at peace than st any time during the past decade. Rebel leaders Of importance have either faced the firing squad or have died in battle. General Francisco Murguia, the most pretentious rebel. was ex- ecuted last October following his cap ture at Tepehuanes, Durango, by fed eral forces. His death was closely followed by that of General Juan Carrasco, who for many months had terrorized the west coast, principally in the state of Sinaloa. The elimina- tion of these two revolutionists had s salutary effect upon lesser rebel chiefs, who according to war office statements, have made requests for amnesty in large numbers. Each case is being decided upon on it's indiyid- ual merits.
 Mexico as yet is not wholly at peace. Every state harbors its dis gruntlcd elements which at times adopt harrassing tactics, sacking vil- lages, blowing up trains and pillag- ing haciendas. Mario Ferrer heads considerable forces in Oaxaca, Mig uei Aloman and others are heard from frequency in Vera Cruz, Puebla, Jal-- isco, Hidalgo, Michoacan and Guer- rero each has its well-known malcon- tents. The northern tier of states of Old Mexico, Tamaulipas. Coahuila and Chihuahua, also report outbreaks but these are said by federal author ities to be inspired by rebels operat- ing from the United States side of the International boundary. Among those cited as the chief conspirators 2 are Candida Aguilar, Pablo Gonza- les, Estachan Cantu and Manuel Pelaez. All these men, however,
 
 few months have disclaimed any in- tention to start trouble in Mexico.
 Army Reduced
 The army has been reduced to ap- proximately 50,000 men, and the war office budget for 1923 shows . ma terial reduction from that of 1922. Trains are running everywhere and new highways are being opened. These facts are pointed to by friends of President Obregon as substantial proof of the assertion that the era of nationwide peace is near at hand.
 Economically. Mexico is not in as good condition as 1t was a year ago. The absence of United States recog- milton has withheld the anticipated in- flux of foreign capital. and business is at virtual standstill. Money is tight and banks are ioaning only on gilt edged security. The general economic situation in Mexico has shown no improvement during the month of October and conditions are somewhat worse" says a report to the United States department of com merce by John F. Bushnell, acting trade commissioner In Mexico, cov- ering the current month. This situa- tion is due to the gradual decrease in the purchasing power of the popu- lation and the low state of general production. Up to the end of Octo- Der the national congress had failed to pass any legislation which would have remedial effect Gn exist ing economic conditions. This, with the enactment of certain labor laws by some of the states, is causing some apprehensions. The agrarian policy of the administration continues to be enforced. Summed up. there Is general lack of confidence in com mercial circles that is reflected in decreased sales and productions.
 Optimistic Note
 The most optimistic note in the economic situation arises from the agreement reached last June in New York between Secretary de Ia Huerta and representative of Mexico's for eign creditors. The treasury depart ment says that the 100000 pesos necessary for the initial interest pay ment due next January 8, Is now. on deposit and that the remainder of the 33.000,000 pesos to be paid next year will be available on the pre- scribed dates. If Mexico meets these payments promptly, financial circles admit that business stability will be greatly increased
 The past year has seen no forward step taken toward recognition of Mexico by. the United States, Great Britain or France. In fact, the dead , lock which has existed ever since Secretary Hughes made his famous demand that American rights in Mex ico be secured by treaty, has merely been emphasized. President Obreron and the foreign office have reiter-
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