DOLLAR DIPLOMACY AGAIN

Mr. Kellogg's very severe note to Mexico contained what was, to all intents and purposes, a threat to sever diplomatic relations and to withdraw our recognition of the Calles government.

American citizens possess very large oil holdings and other industrial property in Mexico. Ever since the present government announced its intention to enforce the land laws of the new constitution these interests have believed their business to be threatened with destruction. They have exerted frantic pressure on Washington to adopt drastic measures in their behalf and have apparently succeeded in forging the issue. Time and again President Calles has declared that the new land laws are in no way retroactive an will affect only future property holdings. Nevertheless the State Department has continued to write notes bordering on the insulting to our neighbor beyond the Rio Grande. Apparently then, the State Department is acting in the interests of further economic penetration and expansion by American interests, and this is what is meant by threatened destruction of American business.

It would seem to us that Mexico is acting well within her rights in reserving her property for her own nationals in the future. It would further seem that the Mexican government's interpretation of its own laws is more likely to be correct than the interpretation of a foreign power. There have been certain indications that our government realizes that its case is none too strong. It was inadvertently revealed this week that the sensational newspaper stories on Mexican Bolshevist propaganda in Nicaragua were inspired by those "higher up in Washington" to incite further resentment in the United States against the present Mexican government. In view of this revelation it may fairly be asked, how much of the uninformed and unreliable propaganda last summer against the Mexican religious laws was inspired by those higher up. Such methods are more worthy of the Balkans than of a government which has supposedly stood for peaceful are traction of international disputes. If this government really has a case, which seems doubtful in view of the preceding facts, let it be taken to the World Court or the Hague Tribunal for settlement.