Huerta Rule Weak; America Is Blamed.

New York Times 100 years ago today, April 12, 1913:
Withholding of Formal Recognition Given as Cause of Mexico's Bankruptcy.
CHAOS PREDICTED RESULT
Rebels Hold Several Important States — Spain Acknowledges Existing Administration.
Special Cable to The New York Times.
    MEXICO CITY, April 11.— Spain followed England's example to-day in recognizing the Huetra Government of Mexico. Italy is expected to take the same action soon. It is the general opinion here that the fate of the existing administration hangs on American recognition, and some persons even express the opinion that forty-eight hours' failure on the part of the United States to give formal recognition would mean chaos in Mexico.

    MEXICO CITY, April 11.— That the withholding of official recognition by the United States has weakened the Huerta government materially is the opinion expressed generally by the public and admitted privately in certain Mexican official circles. The new rebel movement has made greater progress than has the Provisional Government in opposing the insurgency. It no longer is a secret that the condition of the Treasury is such as will not permit much further a continuation of military operations. That has been admitted publicly by the Mexican Minister of the Interior, Garcia Granados.
    The Chamber of Deputies has not approved the proposed foreign loan, but its failure to take up that subject is said to be due to a desire to avoid further embarrassing the Finance Department, which has been unable to arrange for flotation of the loan, notwithstanding recent assurances to that effect from London. It is assumed by the Government that its inability to issue the loan is due directly to non-recognition by Washington.
    Editorial writers comment on this phase of the situation, and there has been begun a propaganda in the local press tending to place responsibility for the fate of Mexico on the United States. Further complicating the financial difficulties harassing the Government is the steady increase in the exchange rate, which in a week has mounted practically from parity to 220, and that latter rate is available only to favored patrons. In an effort to check the upward tendency of the exchange rate, the Minister of Finance is urging Congress to authorize an increase of 10 per cent. in the export tax on gold. This has brought Mexicans to the realization that even the National currency no longer is maintained on a gold basis.
    Business conditions in Mexico are reflecting seriously the revolutionary disturbances. Smelters at Monterey, Veladena, and Torreon have been closed for lack of fuel. At San Luis Potosi the smelters are running on half time, and at Aguas Calientes to a third of their capacity. At Chihuahua and Matchuala the mills are running on full time.
    Transportation facilities remain seriously crippled. The railroads to the seaboard and Matamoras are the only outlets.
    Rebels practically control the States of Sonora, Coahuila, ana Durango, in the north, while the situation in the south, where Emiliano Zapata and his rebel followers still are in control, has not changed materially. In the State of Nuevo Leon the Federals slowly are regaining possession of the railroad to Laredo, on the Texas border, but the rebels pushed back from that line of communication are extending the zone of their operations far to the eastward.
    In southern Coahuila the rebels are in possession of the immediate neighborhood of' Torreon. Between there and Chihuahua the insurgents are interrupting traffic, on the Mexican Central Railroad almost at will.
    So uncertain is the situation in the State of Durango that the Government itself is unable to say whether the State capital is in the hands of the Government forces. There is no communication between Durango and Mexico City.