Page:Mexico and its reconstruction.djvu/90

72 further loans appear to have been made abroad. To the difficulties of raising a loan brought about by the revolution there were added those caused by the World War—none of the lending nations of Europe had money to lend after August, 1914; and through much of the period since that date neither the government nor the people of the United States would have been willing to loan important amounts in Mexico.

But the World War is not the cause of the failure to keep up the services of the foreign debts of Mexico. All but one of the Mexican external debts, direct and indirect, were in default after July 1, 1914, a month before the outbreak of the war in Europe and since January 1, 1915, no payments whatsoever have been made. Meanwhile the obligations grow. By January 1, 1919, they had come to total $336,344,080, not including the bonds of the National Railways of Mexico.

When the foreign debt service will be resumed, of course, no one can tell. On September 1, 1918, President Carranza in his message to Congress stated that Congress had authorized him to contract abroad or in the republic three loans amounting to $300,000,000. But these were not apparently for the service of the foreign obligations already incurred. The government issued an official statement in January, 1919, to the effect that it intended to resume the payment of interest and settle arrears of interest on the foreign debt "as soon as the external commercial life of the Nation has been regulated." Claims have been put forward since