Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-03-16
MEN AND MONEY
By NJ. S. Rukeyser.
Copyright. 1927


growing sentiment in that country
for change in the drastic constitu'
tional provision affecting oil lands, to
| which the United States Government
had strenuously objected.
| The officials of the Department of
Industry. Commerce and Labor are
anxious to break the deadlock, which
has resulted in falling off of Gov
eminent revenues from oil operations.
This income in the last two years has
been materially reduced. and there is
no disposition on the part of foreign
oil companies TO resume halted oper-
atoms until the Mexican Supreme
Court has passed on the constitution
atty of the mooted Article XVII of
the new Mexican constitution, whose
| execution has been blocked by injunc-
| tons granted by district judges. The
Attorney General appealed from this
decision, and there is a group which
favors no legislation to clarity the
| matter.
Policy of AlOofness.
Wall Street bankers have main
tanned a policy of aloofnesS and reti-
| cence during the recent critical ex-
| changes of views between the Ameri-
can and the Mexican Governments.
! Although it had been announced last
l
! had met its obligations up to the end
OF last year under the terms of the
credit rehabilitation agreement with
| the international committee Of bankers
| on Mexico, II was we'll known that the
| bankers were concerned over the pros
| pect of any serious and protracted pc.
lltical and economic struggle In
planning the resumption of interest on
! the debt which had been in default
for nearly decade, the Mexican gov.
eminent counted heavily on oil reve-
| nues, which have been falling off.
In agreeing to resume interest pay.
| ments on the debt. Mexico was un.
questionably primarily interested in
! improving it's foreign credit. The
present conflict over the alleged
confiscatory character of the con.
stitution in respect to foreign oil
holdings tends to Offset the expected
benefits of debt resumption. Foreign
capital is indisposed to flow to Mexico
until the disputed rights are definitely
established. Apart from the pre-war
railroad and government loans to Mex
leo, foreign capital has entered Mexico
primarily through the channels of
alien corporations such as the Ameri.
can oil companies. The Mexicans
themselves have thus far shown little
genius for initiating large scale bust
ness operations. Mexico thus far has
little OF either consumer or producer
ownership.
VIII Block Capital Flow.
Recognition of the fact that the
threatened confiscation of Oil lands
like the non-payment of interest on the
national debt--would block the flow
of new capital to Mexico may be
factor in the reported growing belief
that the oil law should be amended.
The disappointment Of the Mexican
people that the satisfactory meeting of
the debt agreement with the foreign
bankers had resulted in no new flow
Of capital to Mexico was reflected in
an editorial in the Universal of Mex
leo City. which said:
"A New York dispatch published in
Mexico City states that the financial
press makes no comment on the paw
ment made on the Mexican debt. The
favorable impression we expected to
make has failed to appear, although
we have paid at the cost Of much
sacrifice the sum of 1900, 900 pesos
1T was announced at the time the
agreement to pay the debt was made
that when capitalists saw that Mexico
wished to pay and could pay. currents
of gold would. flow into the country
to develop our natural riches, but we
are still waiting. .a s.s ~ 4 Ertts
1--WE are suffering 20 satisfy q small
group OF bankers who neither in the
present international difficulties nor
in any others have done anything that
would recognize this credit, which we
foolishly believed would be re.estab-
lished.
Now Is the time to ask whether
the government has the right to
impose tremendous sacrifices on the
people, no matter what the conditions.
in order to pay a group Of powerful
gentlemen, VINO, in the idleness which
they enjoy have not felt or learned
the suffering which the desire TO be
well thought Of by them has cost US.
Robert Dollar on China.
What with sore spots in Mexico.
Nicaragua and China, the average
Wall street man Is unable to follow
the ramifications OF international poll.
tics.
Robert Dollar, veteran head Of the
Dollar Steamship Lines, who has
studied the Chinese situation at first
hand for many years, gives bust
ness mans Interpretation OF the high
spots in the outbreak in the Orient.
Where the actual fighting occurs
business Is suspended. but few miles
away business is going on as usual,
said Mr.. Dollar, in an article In
Forbes.
During the past IL years the for
eign trade OF China increased 800 per
cent. All this with civil war going
on continuously"
AS for the current struggle, 1t is.
according to Mr.. Dollar, Just one
tuchin, or general, fighting against the
other. each one trying to grab all the
money he can, They have deprived
the Central government OF funds, so
in reality there is no Chinese gov
eminent. What there il left of the
old Central government is still in
Peking. And the Cantonese govern
ment, or so-called Nationalist, are To-
Gated at Wuchang on the Yangtsze
River, 500 miles from the ocean.
Await Stabilized Government.
Keen in mind that the Chinese
civilians don't care how many war
ships are in Shanghai. In fact, they
want the concessions to remain as
they are until a strong central gov
eminent is established. Then the
concessions will be turned over to that
government. But until then extra.
territoriality must remain and the
mob must not get control.
Really the only danger that the
city of Shanghai and the foreigners
are in, is strikes and mobs instigated
by the Boshevists and that is real
danger.
II do not hesitate to say that after
the Chinese get done fighting, the
greatest development in the worlds
trade is going to be in China. There.
fore, it behooves us to do all in our
power to assist in getting a strong
central government established. With
out this we will just have to jog along
as we are doing"
The foregoing is an able business
mans slant on a complicated political