812.00/15751½
The Secretary of State to President Wilson
My Dear Mr. President: I received your letter commenting upon the telegram which I sent you on August 6th in regard to the exportation of cattle from northern Mexico.
[Page 548]The reason for furnishing Villa with an opportunity to obtain funds is this: We do not wish the Carranza faction to be the only one to deal with in Mexico. Carranza seems so impossible that an appearance, at least, of opposition to him will give us an opportunity to invite a compromise of factions. I think, therefore, it is politic, for the time, to allow Villa to obtain sufficient financial resources to allow his faction to remain in arms until a compromise can be effected.
Much of our information in regard to the conduct of Villa comes from reliable and more or less friendly sources. I believe he is desperate on account of lack of money, but we will know much more about that after General Scott has had his interview with him today. So far as payments made by him for seized property are concerned, it must be borne in mind that these payments are in Villista money, which is worth, I am informed, about two cents Mexican for a peso, which is, by decree, declared to be worth sixty cents Mexican—that is, while Villa makes a pretense of paying, he is doing so in currency which is practically worthless.
Faithfully yours,