The Washington times., 1922-06-25
BUSINESS AND FINANCE or #HssEga&a#Essn
| FINANCE
- p, AND
BUSINESS
By y. G. FORBES.


Finance minister OF Mexico, who
has succeeded In obtaining a very
fair settlement OF Mexico's foreign
bonded indebtedness with American
and European international bankers,
and who 10 now comforting daily
with American oil leaders having
barge interests In Mexico. '
First let me say that I feel fairly
confident that. by give-and.take. this
whole vexing, protracted Oil dispute,
which has been 90 unsettling, will be
amicably composed.
My session with Senior de, la Huer.
ta caused me to indulge In some
fundamental thinking. Perhaps
consideration. of the following will
enable you to understand better
some of the momentous' problems be-
fore business and before statesmen
today.
The rising tide of democracy
throughout the world has threat
'ened to sweep away property rights
In various countries.
We mentally picture Britain, for
example, as d staid, slow.moving
conservative land. Yet, after Lloyd
George first began advocating the
taking away Of land from large own.
ers. and putting II at the service Of
small renters or owners. ne expert.
enced tremendous difficulty In re-
straining the movement within
proper bounds. Some Of his other
progressive policies also brought
him face to face with grave troubles.
from both the reactionary and the
radical elements Of the nation. In
deed. the hour came when he felt
compelled to turn round and vigor-
ously oppose the more sociaiistic de-
mands Of labor. But with his nmaz-
ing ability as a political acrobat aud
his uncanny, faculty for foretelling
on which side the cat 10 going to
jump, he has thus far succeeded in
maintaining his power and prevent.
ing radicalism from running riot.
In Russia the rising tide Of democ.
racy burst into q tidal wave and
swept to destruction everything In
its path. The schemers who rode on
top OF this wave made no effort
whatsoever to preserve property
rights or any private ownership what.
soever. With what results all the
world knows.
In Germany the rising tide Of de.
morcracy swept away the monarchic
regime and at one time threatened
to undermine the ownership of In.
dustry and other forms Of property.
But at heart the Germans are a
homeloving. law-abiding, industrious
people, and the Reds were held In
check. But the present government
has at this moment its hands full
trying to evolve. laws satisfactory
alike to the SHINES, or property-own.
ing class and the socialistically in.
clined classes.
Italy il faced with q similar prob.
lem and there are whispers tnat II
may come to q disturbing head any
day. The ruling classes in Japan
are confronted with this same rising
tide Of democracy and have not yet
found q permanent solution. In
greater or less degree, many other
countries have found themselves h
the same boat.
What has all this got to do with
de In Huerta's two main missions 10
this country? Simply this:
Under the old order. the order of
pre.war days, vested right were re-
garded as sacrosanct, as inviolable
Today human rights, democratic
the birthrisht of free men.
are held to be supreme, as towering
above the material. The rank and
file of the people in almost every
land are asserting themselves, assert.
ing their powers. asserting their SOW.
ereignty. They are demanding that
the old rules be changed. They in.
sist upon laying down new laws
the rights Of property.
They demand that property serve
the people, not dominate them.
The basic problem concerning Mex.
ico's statesmen today. in common
with the statesmen or other nations,
Is how to reconcile the old order
with the new, how to effect a transi.
ton peaceably and equitably, how
to satisfy the democratic demands
Of the masses without unfairly and
sacrificing the rights
Of property owners.
know what the representatives
or the Mexican bondholders started
out to demand, and I know what
they got. To my mind, they obtain.
ed q reasonable compromise, whIle
the Mexican People got all that they
could nationally have expected.
Now. It IL all very well for Amer.
ican or other foreign owners Of oil
properties in Mexico to say: 1--WE
invested our capital under such-and.
such provisions, and you must not
change those provisions by as much
as one iota." But II our oil leaders
are business statesmen they will
take cognizance Of the democratic
evolution which Is under way
the world, and will not
insist upon De Ia Huerta or Obregon
or any other Mexican statesman
pledging himself to do that which
under the new order. would prove
impossible. Capitals.
tic Shyiocks would be little likely TO
fare any better than Shakespeare
Shylock.
Ny. earnest conviction IL that De
Ia Huerta 10 sincerely anxious to 10
az far as the changed order of
things will permit him to 20 in
working out q basis for the future
r> 0uIafiov, NJ his co,pf ry'. r,otn