Carl William Ackerman

“ If the Executive under my charge does not immediately send to Congress concrete bases to obtain the initial capital of the new bank, but asks authorisation to negotiate with capitalists, it is due to the fact that in the present financial condition throughout the world, it is not easy to foresee the difficulties the Government may encounter to induce capitalists to make an investment which, although safe, will probably meet with a barrier of prejudice and lack of confidence. ”

“ Since 1910 she has had nothing but trouble and although it was not begun with money it has cost the government and the people millions of dollars in gold and property, thousands of lives and the loss of her international prestige which cannot be measured in pesos. Today most of the fighting is at an end. There are bandits in some sections of the Republic, but their raids are becoming fewer each month. Mexico City, itself, is as busy and active as New York, but there is a financial crisis, which, although not evident upon the surface of things, is destined to mark the climax of the revolution. ”

“ Elemental prudence dictates that the new bank of issue should begin its operation on perfectly safe bases because it is the only manner in which confidence and credit may return in healthy and vigorous form to renew the economic life of the Republic. ”

“ Once this government falls, terror will reign again in all parts of the country, and as the United States and the Allies are almost wholly dependent upon Mexico for oil and various minerals, a state of anarchy in Mexico which would interfere with the Allies' supply of these valuable war necessities could not be permitted. If the revolution should break out again the only solution would be American intervention, which would be not only costly to us but would divert to a certain degree the energy of the United States which it is so necessary to concentrate upon the war in Europe. ”

“ Surely the Deputies will be persuaded that one of the principal causes why agricultural, industrial and commercial development of the country have not proceeded with the quickness with which the re-establishment of order might lead one to suppose, is the almost complete disappearance of credit, and the insufficiency of circulating medium which makes difficult the reasonable operation of the economic activities of the Nation. ”

“ The banks of issue figured their own shares of stock among the securities that could be realised upon. As a consequence of their unreasonable management and of their bad organisation, the complete failure of the old system of institutions of credit could be foreseen when the international crisis began in 1913. In effect the first manifestations of revolution actually were enough to cause the banks to ask the government of the usurper for the privilege to suspend payments which was conceded to them, in exchange for the privilege the banks of issue made a large loan to the usurper. ”

“ New York bankers will not loan money to Mexico as long as conditions are unsettled and as long as there is danger to American property and American citizens in Mexico. These bankers will not subscribe to a loan as long as they hold old Mexican bonds which have had no interest paid on them in six years and which are selling for fifteen dollars each in the United States to-day. ”

“ Six months before I arrived in Mexico the present government was exceedingly suspicious of Americans and especially of the United States Government. When an American during my stay there called upon a high government official and discussed the question of a loan this official remarked:
"The American people and the Mexican people are all right, but the governments are all crooked." ”

“ The Carranza Government has been told officially that so far as the United States Government is concerned it is not in America's interest for Mexico to declare herself an Ally, but entirely in the interests of Mexico. Whether President Carranza and his government will realise this, and whether, even if they do, they will be able to carry through a break with Berlin, are unanswerable questions. One must await developments. ”

“ It is the contention of the American experts and of certain government officials that through governmental economies this deficit can be cut down so that it will not be "dangerous" and new bonds can be issued to replace bonds held in foreign countries.
The other view of the financial situation, which I found the predominant one, is that the present government cannot continue without the aid of foreign capital. This would seem to be the belief of President Carranza, too, inasmuch as he asked the federal Congress for authority to raise 300,000,000 pesos, that is, $150,000,000. ”

“ The lack of confidence in the ability of the Allies to defeat Germany and old suspicion of the United States are the two things which hamper the leading Mexicans who are working for a closer relationship between Mexico and the Powers fighting Central Europe. ”

“ When the economic situation of the country became grave and before the Constitutionalist Government made any decrees at all on institutions of credit, the situation was getting more difficult every day until these institutions ceased to properly operate and soon became merely speculators in the paper money issued by the Revolutionary Government. ”

“ There are more Japanese shops in Mexico City than I had expected to find. Although there are three or four in the business district, the big majority are in the suburbs. In offices throughout the city one sees hundreds of Japanese posters, advertising Nipponese goods. ”

“ All bulls representing the Allies are defeated and the German bull defiantly gazes at Uncle Sam, who is standing at the edge of the ring. A man representing Mexico is standing beside Uncle Sam and urging him not to get into the ring. ”

“ Furthermore, and this is the opportune time to say so, the sum asked for by the government appears small to us, for we believe it very difficult to obtain any money from foreign countries without the previous payment of the coupons of our debt, and if this were necessary, the amount destined for the sole bank of issue would come out much less, and we believe that if any foreign loan must be agreed upon, we should strive resolutely to procure up to the sum necessary to improve our credit in foreign countries and to solve economic difficulties in the interior. ”

“ Should the Carranza Government fall there are on the horizon to-day no leaders, nor is there a group of men, who could take hold and do as well as the Carranza Government is doing. There are rebel leaders in various parts of the country from Villa in the north to Zapata in the mountains near Mexico City and General Pelaez in the oilfields outside of Tampico. ”

“ It is a clever bit of German propaganda. Although only about two out of every ten Mexicans can read and write, all can understand pictures. This map, even without a heading, tells a story which the Mexicans can comprehend. ”