Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-12-28
OIL MOVE
CAUSES HERE
Capital Favorably impressed
by Voluntary Action OF
Mexican Chief.
ny DAVID LAWRENCE.

President Gales has taken a legisla
tive shortcut that has almost taken
official Washington's breath away. The
suddenness Of his action in recon.
msnding to the Mexican Congress the
enactment Of a new law relating to
petroleum has produced an excellent
impression. particularly because 1t
was a voluntary step on the part or
Mexico unproyoked by diplomatic
pressure OF any kind.
The Mexican president adopted this
course-nameiy. the sending OF q bill
TO congress--tO save time. Congress
in Mexico City will adjourn in few
DAYS and viii not meet tifl next
September. The custom i'm Mexico II
that Ave decisions OF the supreme
Court must be rendered 10 esta hsish
a precedent One has been rendered.
1t Is In itself not all-embracing and
leaves unsettled many points TO
wait for four other decisions meant
loss OF time while the financial world
which has been waiting for Mexico 4"
settle her problem was kept waiting
siia longer.
Text al Rin Unknown Here.
The text OF the bin. which has
PASSED the lower house una n.niousiy
and will undoubtedly pass the Mexi'
can Senate within day ~ TWO. mas
MOI vet been received here. and the
hone In that 1t win not leave unset
tied any of the moot points which
have been the subject of long diplo-
matte notes between the two coun
tries, The first draft as published In
the press Indicated that some OF the
main points were being touched on,
but there are coliatera points which
only q reading OF the entire text OF
the blu win reveal.
There L. a tendency TO ascribe the
action by President Gales to the visit
Of Charles Llndbergh, or rather 10
the favorable atmosphere produced by
the aviator's good viii flight. unques'
tionabiy President Gales could no,
have proposed such hill Mt time
when he might be attacked on the
ground Of yielding to the point o!
view Of Mexico's northern neighhor.
Financial trials cited.
CeineitieEtaily also IL III. crisis Ia
Mexicos financial affairs. which viii
need the cooperation Of American
| bankers for settlement. In this prob
l~sr, Dwish. Morrow. American AM
| ha ssadur. Is known to he OF great aid
| to Mexico, lle knows just what viii
ana will not influence the banking
wurid To clear the decks OF any Ques
ton of confiscation Of foreign prep
erty was the first requirement before
Mr.. Morrow could recommend Mex:
can enterprises as a whole for invest
mert For several weeks American
ana uciers have been looking hope
fully toward Mexico as u possible out
let for surplus capital. They win take
Dwight Morrow's Judgment hecauss
his former connection with J. r. Mer
gan Il Gu and confidence won him
the close friendship Of the leaders In
American investment fnance.
what the President Of Mexico Il
doing In TO make Il easier for Ameri
ran capttai To cross the southern
boundary and 10 bring Mexico tbs
prosperity which her andeveiopcsi ~
sources have long wanted. but which
has heen held hack by doubts ever the
| retroactive character OF some IL her
laws. Once the principle " tirmly ~
tahlished that Mexico win not enact Z
retroactive law. but win contorm u
the Jurisprudence Of other nations
an unprecedented boom may he look
ed for south of the kia Grande,
tCaasr.xht tas.l