File No. 812.00/1027.
The American Ambassador to the Secretary of State.
The situation is worse than when I left here, especially as to active physical resistance and growth of popular discontent. Business now [Page 431] suffering profoundly; prices for all necessities abnormally high; revolution more definitely active in States of Guerrero, Puebla, and Yucatan, and is directed from the north.
The action of President Taft in taking military precautions has brought the Government to realize its responsibility in protecting lives and property of foreigners. American population profoundly relieved and feel a security that is arresting the heavy emigration of women and children to the United States. This was expressed by a committee from the American colony who called this morning.
The whole situation now awaits the return of Mr. Limantour and ensuing conferences; if these result in arrangement with the revolutionists, based on a definite program of reform and changes in the personnel of the Government, conditions will doubtless improve. If Limantour is not successful, they will grow worse.