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Rh This is needed not only to meet the obligations of debts already incurred but to provide money to defray the expenses of the educational and social reforms that the government may very properly undertake for the benefit of the common people. How far this financing can be accomplished through loans made on purely private initiative can not be stated. Even if it could be wholly done thus, it is doubtful whether that standard should be accepted. The United States may very properly do what it can to assure that Mexico be given assistance under conditions that will be easy for her to carry. It may also seek to assure that its own citizens shall not enter speculative governmental contracts, the attempted enforcement of which would be likely to lead to international complications. The alternative which will be offered in Mexican loans will be high rates with poor guarantees for payment or low rates and good guarantees. The recent state of public opinion in Mexico indicates that her governments would prefer the former standard.

It is open to question whether considerations of good friendship permit the only country whose citizens are in a position to refinance Mexico to enter contracts such as Mexico would be glad to accept. Whether the special guarantee, which might be given, should be an hypothecation of certain sources of public income, or the establishment of a special customs service, or some other means that would protect the right of the lender, must be determined by circumstances not yet developed. It seems Mexico will very probably show unwillingness to give any special guarantee in return for financial aid.