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minished, but one or more revolutionary movements may at any time be dangerous to the Government, already suffering from universal unpopularity. In the north the revolution exists only in the States of Durango and Chihuahua; violence elsewhere is simply brigandage. In the south the States of Mexico, Michoacán, Guerrero, Morelos, and parts of Oaxaca, Puebla and Vera Cruz are practically in revolt against the Government and brigandage is existent everywhere.

The Government is making frantic efforts to borrow, but the German and French Ministers have made cautionary representations to their Governments, and success would appear problematical. Unless an unexpected change occurs a crisis will be inevitable.

The strike on the National Railways is at present the gravest situation the Government has to deal with, as suspension would bring about intolerable conditions. Unless this difficulty is arranged within two or three days all communication throughout the Republic, except by the Mexican Railway, will be suspended and thousands of men added to the forces of disorder.

WILSON.

File No. 312.112F821/9.

The American Ambassador to the Secretary of State.

[Telegram--Paraphrase.)

AMERICAN EMBASSY,

Mexico, January 11, 1913. Francisco Villa is reported in the local papers to be in El Paso.' Villa was a former Federal leader and ex-bandit who has been in prison in Mexico City for the murder of Fountain and for other anti-American activities, as a result of the Embassy's representations last spring.

WILSON,

File No. 812.00/5865.

The American Consul at Vera Cruz to the Secretary of State,

(Telegram-Paraphrase.]

AMERICAN CONSULATE,

Vera Cruz, January 14, 1913. I have received information, which I believe to be reliable, and which I am sending also to the Embassy, to the effect that Madero Government plans sham revolutionary uprising in Vera Cruz in order to kill Felix Díaz and his companions in prison and to make it appear they were killed accidentally or to be justified in shooting them immediately afterwards. As this uprising may be started at any moment my aid was solicited for the good name of the country. If our Government would promptly adopt such measures as would prevent this act it might be prevented if the Embassy should tell Madero the intended plot was known; the information might also be given to the press by the Department. The presence of a cruiser might also have a beneficial effect. I have sent a duplicate of this telegram to the Embassy.

* Confirmed on January 14 by the American Consul at Ciudad Juárez. File no. 812.11F821/10.

CANADA,

File No. 812.00/5867.

The American Ambassador to the Secretary of State.

[Telegram-Paraphrase.)

AMERICAN EMBASSY,

Mexico, January 14, 1913–5 p. m. The dangerous situation at Acapulco would indicate necessity for prompt and adequate protection on our part of American and foreign interests. I recommend the immediate sending of war. vessels adequate to meet the situation, with instructions to remain in those waters and not to be withdrawn except after consultation with the Embassy. I have meantime requested British Chargé d'Affaires to detain Ènglish gunboat Shearwater until our Government shall have taken action.

WILSON.

File No. 812.00/5856.

The Secretary of State to the American Ambassador.

(Telegrams-Paraphrases.]

DEPARTMENT OF STATE,

Washington, January 14, 191.3—6 p. m. U.S. S. Denver has been ordered to-day to proceed at once to Acapulco and will arrive there on or about 21st instant.

Lay the situation before the Mexican Foreign Office and inform that office of the arrival of the Denver.

Kyox.

File No. 812.00/5865.

DEPARTMENT OF STATE,

Washington, January 16, 1913—2 p. m. Consul Canada's telegram January 14 to you. You may inform the Mexican Government that this report has reached both the Department and the Embassy; while deprecating its authenticity, point out the peculiar criminal and dastardly character of such a procedure; say how detrimental it is to the Mexican Government for anyone to circulate such rumors; indicate that a vigorous effort to apprehend and to punish those responsible for them would seem to be in order.

Telegraph the Department your opinion as to sending a war vessel to Vera Cruz,

File No. 812.00/5887.

The American Ambassador to the Secretary of State.

[Telegram-Paraphrase.)

AMERICAN EMBASSY,

Merico, January 17, 1913–6 p. m. Action on Department's January 16, 2 p. m., will be taken tomorrow. Mr. Lascurain declined to see anyone today. General Beltrán, in command at Vera Cruz, and Commander Azueta, in charge of the arsenal there, have been removed.

I have instructed Consul Canada to again advise Department if he believes a war vessel necessary at Vera Cruz.

Wilson.

Note.-On January 18 the Ambassador submitted a draft note embodying his own idea of the representations that should be made to Mexico. This paper is printed under “ Protection of American life and property in Mexico," to which subject the draft note is directly related. See p. 886.

File No. 812.00/6019.

The President's Secretary to the Secretary of State.

THE WHITE HOUSE,

Washington, January 30, 1913. DEAR MR. SECRETARY: The President directs me to send you for attention the enclosed copy of a telegram from Governor Colquitt. Sincerely yours,

CHARLES D, HILLES.

[Inclosure- Telegram.]

The Governor of Teras to the President.

AUSTIN, TEXAS, January 30, 1913. Am advised that one thousand rebels under Salazar surrounding Juárez, prospective battle in forty-eight hours. Will you kindly direct necessary steps be taken to prevent firing into El Paso. Please answer.

O. B. COLQUITT.

File No. 812.00/6019.

The Acting Secretary of State to the Governor of Texas.

[Telegram.]

DEPARTMENT OF STATE,

Washington, January 31, 1913. Your telegram January 30 addressed to the President referred to this Department. Immediately upon receipt of your message the War Department was requested to renew to the General in command at El Paso the general precautionary instructions relative to notifying the leaders of the Federal and insurrectionary forces at Ciudad Juárez that in any engagements that might occur between them there must not be any firing which would result in the passage of bullets across the international boundary line, and such orders were sent by the War Department last night. The attention of the Mexican Gorernment had already been called to the situation.

HUNTINGTON WILSON.

File No. 812.00/6068.

The American Ambassador to the Secretary of State.

[Extract.)

of

AMERICAN EMBASSY,

Mexico, February 4, 1913. MY DEAR MR. Kxox: Upon resuming my duties at this post after an absence of two months' I find practically the same conditions existing that prevailed prior to my departure. The area of the armed revolution against the Government appears to have sensibly diminished in the north, but at this moment there are abundant indications of a resumption of formidable revolutionary activities in the States of Chihuahua, Durango, Coahuila, Nuevo Leon, and Zacatecas. The peace negotiations which recently took place were, in the opinion of this Embassy, initiated by the revolutionists for the purpose of gaining time to cement various alliances and to complete their shipments of arms and ammunition across the border.

The area of the revolutionary movement in the south continues to be about the same as hitherto, though the scene of activity is constantly changing. To such a degree is it apparent that the Federal troops, either through inactivity or disloyalty or for the purpose prolonging a situation from which their officers reap unusual pecuniary benefits, are unable to dominate the situation that I am reluc: tantly forced to the conclusion that hope of the procurement of improved conditions in those States is illusory and that not only will the revolutionists continue to maintain a reign of terror and destruction over this vast section of country, but that they will eventually extend the theater of their operations over the whole of the States of Vera Cruz and Puebla.

There are periods of activity when the whole country, from the Pacific to the middle of the State of Vera Cruz, seems to be alive with revolutionists, and when the Federal Government seems to be utterly unable to cope with the situation. Following this there is frequently a considerable period of inactivity during which widespread brigandage prevails, but apparently no organized movement of revolutionary troops. After a long study of this peculiar phenomenon I have come to the conclusion that the periods of activity follow immediately upon the procurement and distribution of addi. tional arms and ammunition, and that when these are exhausted activity ceases and insincere negotiations for peace are initiated.

* Mr. Wilson resumed charge of the Embassy on January 5. .

As time goes on it becomes more and more evident that the prime cause of the failure of the Government to more thoroughly dominate the revolutionary situation in the north and in the south is due to the hopeless state of the Federal army, which is rapidly losing the morale and discipline it possessed under the Diaz régime is torn by intrigues and dissensions and united only in its contempt and dislike for the present Government.

While the almost hopeless condition of disorder which exists in the country might be expected to wholly absorb the Government's energies and resources it has other grave and even menacing problems, the most pressing of which, and one indeed that is undermining the already weak foundations of the Madero administration, is the economic situation which is hourly assuming more threatening proportions. Over one-third of the States of the Republic a revolutionary movement has now been in progress for two years and not only have those identified with it been idle and nonproducers but the prevalent lawnessness and conditions of anarchy which have resulted from their activities have deterred a vastly greater number of industries and law-observing people from the pursuit of their usual occupations. The revolutionary elements in control of those vast sections which ordinarily constitute valuable sources of and contributors to the nation's prosperity, instead of being producers of wealth, are not only consumers of the fruits of toil but also destroyers of the sources of supply. Thus an enormous number of haciendas are standing idle for want of cultivation, their improvements destroyed, and their owners frequently either in exile or in refuge in urban centers. The gravity of the situation thus produced is vastly increased by the immense and constantly increasing destruction of railway properties and the interruption of railway communication, thus depriving the unmolested planters, manufacturers, and miners of the facilities for marketing their products and of the means essential to the carrying on of their business. The number of mines which have been closed down because of these conditions can not be accurately estimated, but it is undoubtedly very great. These conditions, supplemented by many others which need not be cited here, have greatly disturbed and demoralized the financial and banking interests of the Republic and have resulted not only in a general stringency and curtailment of credits injurious to commerce and trade but have threatened the very life of these institutions. Attention might here be called to the circumstance that no less than nine States of the Republic are at this moment virtually in a state of bankruptcy; some of them because of a disparity between their incomes and ordinary expenditures, and some of them because of the indebtedness accumulated by profligate and dishonest administrators. Some of these States are now appealing to the Federal Government for relief and I anticipate that their number will increase as time goes on.

While the country at large is being overwhelmed by the stress of the financial situation the Government naturally has not been without its troubles. The sound condition of the public finances and the . large reserves stipulated by the country's financial obligations, which existed at the time of the downfall of the Government of General Díaz, have given place to disorder and a dissipation, through unknown but presumably, in some instances, corrupt channels, of the treasures

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