Oil and Silver The conciliatory comments of the American State
Depart- ment on the situation in Mexico have not prevented strong action to defend American rights. Severe economic pressure has been put on the Mexican Government by America's decision to cease buying the silver which is Mexico's staple product, and whose price depends on American buying. Since the Bank of Mexico may also cease to buy, several of the mines have already stopped working. At the same time the United States have presented a strong Note to Mexico, demanding that she either restore the oil-wells to the com- panies or compensate them to the full value of k8o,000,000. It seems politically impossible for the Cardenas administra- tion to accept the first alternative ; and difficult to raise the money to be paid in compensation by a public loan at a moment when the whole of Mexico's economic system is threatened. For since the means of transporting oil have been withdrawn by the companies, and the storage-tanks are full, the wells, now under the control of the workers, as well as some of the mines, have ceased production until methods of disposing of the oil have been found. With oil and silver production interrupted, and the peso falling rapidly, it seems that some solution of the dispute must be found quickly unless Mexico is to fall into economic chaos, accompanied by severe political and labour troubles.
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