Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdMexico of the twentieth century, by Percy F. Martin.Martin, Percy F. (Percy Falcke), 1861-1941.London, E. Arnold, 1907.http://hdl.handle.net/2027/yale.39002024825797Public Domainhttp://www.hathitrust.org/access_use#pdWe have determined this work to be in the public domain,meaning that it is not subject to copyright. Users arefree to copy, use, and redistribute the work in part orin whole. It is possible that current copyright holders,heirs or the estate of the authors of individual portionsof the work, such as illustrations or photographs, assertcopyrights over these portions. Depending on the natureof subsequent use that is made, additional rights mayneed to be obtained independently of anything we canaddress.OF THL XX "CENTURYPERCYF.MARIINER.G.S.Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd.. .."Igive thfeMoats "Iflforfthe.;founding efa. Colltgi in this Colonf\ \jGift oftheHONORABLE HIRAMBINGHAMYALE 18981929Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdharden it and give it variousshadesof colour.Noteworthy is the skill with whichthecharacteristics of the different animals are hit off,with thesame unconsciousefforts as thosedisplayed by thecavemen of palasolithictimes. Yet,strangetosay,this senseofplasticart completely dies out in the adultHottentot,though not intheBushman. Nor is the latter asdestitute of tribal organizationas he isusuallydescribed, wandering about in disorderlyhordes, like baboons insearch offoodapointalsonoticed byDr. S.Passargein' DieBuschmannerderKalahari.'The Hottentots are stated tocall themselves Khoi Khoin, "Menofmen,''as iftheythoughtthemselves the creme de la creme, or lords of creation. ButDr.Schultzeagaintellsusthat this is notso, theexpressionbeing chiefly used in replyto a questionregarding theirtribal connections. In themouth of apureNamaitsimplymeans that he is a full-blood native, andnot a mongrelor half-breed likehisBastaard or Grriquaneighbours.Inthelongsection (over 200 pages) devoted tothe mentalqualitiesof theNamas, there is a valuablecollection of sixty-eightnational legends, whichare allthemore welcome since hitherto the rich Hottentot folklore has been strangelyneglected.This, no doubt, was mainly due tothe difficulty of dealing with theoral texts ofa languagefull of unpronounceableclicksandstructural complications,so that the fewtalespublishedbyBleekappearonlyintranslations, which are somodified andotherwise defective that they .Jail, to, reflect the realspiritof theoriginals.This is here thoroughlypreserved by\Dr.Schultze's treatment, whichdisposesthe material in fivegroups adventures in thewilderness with cannibalsand wildbeasts,sagasof the Hill Damaras, familyandpastoralstories,mythsofeponymousheroes and of theolden times, andanimal tales. Then eachsagaisgiven in the originaltext reduced to a uniformsystemof transcription, andthis isfollowedby a closetranslation in whichgrammatical forms and idioms areexplainedwithin brackets. The folklore is followedby a considerable number ofpopularriddles, which are treated in the same way, and serve to further exemplify themental character of the people.Afew instances maybegiven.There is a verylittlething whichbringsbig onesmoney.Whatrunsafter another andneverovertakes it ? Awheel. There is a thingwhich lookseasytocatch, butwhichyou willnever catchyourshadow. What is ityoustuff full and then starve?Your gun.What is it youseeeven inthedark, however far or near it be ? Fire.A wide red gorge isedged all round with whitethingsthe mouthandteeth.Thereareseveral indexes, a very fine large-scalemapof theroutes followed, andsomesplendidphotographic reproductionsof Bushmen,Namas, andBechuanas, ofgeologicalformations, characteristic scenery, plants, and animals,altogether25platesand286illustrationsin thetext.,A. H. Keane.\j\AMERICA.Mexico.' Mexico of the TwentiethCentury.'By Percy F. Martin. 2Vols. London :E. Arnold. 1907. Price30s. net.This book isa useful reminder of thegreat changethat hascomeover Mexicoduringthelastfewyears.It is nolongertheland of the diligenciaand thebandit;we cansparethem both ; but, alas! the charro dress, the mantilla, and thehighcomb arealsobecomingobsolete.The author of this book does his best toshowus Mexicoup-to-datebypassinginreviewtheDepartmentsof Government, theArmyand Navy, the JudicialSystem, andthe condition of Education andBeligion, andthen devotes many pages","-to Banking, Insurance, etc., andgiveBafull account of thelines ofrailway.His ^,|iiimib aimosr.as Dad as thenaturalhistoryinthelastEnglishbook on Mexico,whichtaughtusthat"hummingbirds donotsing,"and that "araar.)j , 114j) j , 114?i , 122)>j , 122)3 J, 13051 ), 130) , 142J) 1, 150)1 J , 158J) J, 174'J ), 182)) ), 182J) ), 190> J, 190)J )198)J )206J J, 206)) , 2181) J, 218Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdxxiv LISTOFILLUSTRATIONSVOL. I.MEXICO CITY TRAMWAYS : TYPE OF MODERN FUNERALCARMEXICO CITYTRAMWAYS : TYPEOF PASSENGER SHELTERMEXICO CITY TRAMWAYS : ORDINARY PASSENGER CARMEXICO CITYTRAMWAYS : INTERIOROFPASSENGER CARSPORT INMEXICO: TARPON-FISHINGLOCOMOTIVES : NATIONAL LINES OF MEXICOBUENA VISTA STATION: MEXICAN RAILWAYCENTRAL RAILWAY EXTENSION TO COLIMABRIDGE ON KANSAS CITY, MEXICOANDORIENT RAILWAYMR. ARTHUR E. STLLWELL, PRESIDENT KANSAS CITY,MEXICO AND ORIENT RAILWAYKANSAS CITY, MEXICO AND ORIENT RAILWAY-MR. M. V. WATSON, VICE-PRESIDENT UNITED STATESANDMEXICAN TRUST CO.ON THE MEXICAN SOUTHERN RAILWAYFAIRLIE LOCOMOTIVE : MEXICAN RAILWAYPORTOF MANZANILLO I GENERAL VIEWOF BREAKWATERBAY OF MANZANILLO : ENTRANCE TO THE HARBOUR-PORT OF MANZANILLO : 100-TONSTEELCRANEATWORKPlanof Manzanillo Harbour .At endto facepagei226>> n226ii 234n 55234> 51 242)) 15 254 55258 >5262)j55268j)>1270>i 55274,115282j)55286)i 55292 5530655 )5318322Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdMEXICOOF THE XXth CENTURYCHAPTERITheSpanishdominion MilitaryGovernorsRoyal Auditors Viceroys ReligiousBrotherhoods Effectuponnativesof brutalgovernment First Declaration of Independence Benito JuarezHisfight againstthe Church Hisjustification The baneful influence of theHolyOrdersWhat theConstitutionprovides Forms of government from1821to the present time.Ifthehistory of thenationsbediligentlysearched, therewillprobablybe found no morestrikingevidence of a long, merciless andpurposeless oppressionthanthat of Mexico at thehands ofSpain.During the whole of the three hundredyearsduringwhich MexicowassubjecttoSpanishrule, notonesingle act of grace, of consideration, norevenof commonfairnesstowards thatColonycanbetraced.Commencing with the landing of theSpanishin 1521,whentheymet theIndians'courteous and kindlyif timidreceptionwith thedisplayof firearms and slaughter, alonganduninterruptedseries of cruelpersecutionshas characterised thegovernmentof"NewSpain,"as the country wascalled by its conquerors, butnever by anyoneelse. Notonlywerethe native Indians victimised, reduced to the positionofmereslaves, being boughtand sold with the land and compelled toworkupon it like serfs, but all" Spaniards "bornin America were treated with indignity, being classed as" Creoles" and rankingsocially,andineveryother way, withthe low-class Indiansof thecountry.Nowonder, then, thathatred forSpainandforeverythingSpanishhas become, andwill long remain, a tradition inMexico. Three centuries ofvol. i.1Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd2MEXICOOF THEXXth CENTURYMilitary Governors,RoyalAuditors, Viceroys,ReligiousBrotherhoods and theHoly Inquisitionhave done their workonlytoowell. Theevil occasioned can still be traced in thenaturalgloomand sullenness of the Mexicans, their intensedistrust of foreigners, and especiallyof the Spanish, theirvindictiveness ofdispositionand their inability until recently to conduct a stable self- government.With thepassing of the present generationandthe gradualobliterationof thesebittermemories, a differentspiritis being manifested,and will increase as timegoeson; but to-daytheimpressofthebrutal treatmentwhich thewhole nation had so longtoendure remainspatenttoanyonestudyingthispeople.Althoughthe first Declaration of MexicanIndependencewas publishedas far back as1813, a Constitution wasdeclaredin1820andvirtual separation fromSpaintookplacein1821,it wasnot until February 5th, 1857, that the Constitution nowin force in Mexico became un faitaccompli.Thus it tooka quarter-of-a-century after the Republichadbeenestablishedfor the peopletoagreeupona Constitution, proving the contentionthatthelong periodofpersecutiontowhichthey hadbeensubjectedatthehandsof Spain, had unfittedthe peoplefor self-governmentat once.Certainly no one who has visited the country to-dayandwitnessed its evidences of prosperity, cohesionand contentment wouldknowing itspasthistorycredit that butfive-and-twentyyears agothe whole of this vastterritory wasbeingtorn by internal andapparently unending dissension.Marvellous, indeed, isthetransition whichhas been effected,no less for itscompletenessthan for itscomparativerapidity.The new Constitutionwas not introduced nor accepted finallywithout much troubleand bloodshed, and infact, owing tothecompleteoverthrowof theChurch forwhichit stipulated,thebittereststrugglethatMexicohas evergone throughwasentereduponby reason of this Constitution of 1857.PopePius IX.declared it" apocrypha,"andplacedit under anathema. The Mexicanclergy in a bodypreached againstit,andboldly incited thepeopleto rebellion. Menfoughteach other likewild beasts inthe streets andtheir homes,andthewhole countrywas set by theears. Then itwasthatGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdBemtoJuarez, President oe the United Si wks okMexico, 1861-1872. Dieu Julyi8th, 1872.Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdBENITO JUAREZ 3EenitoJuarezcameintoprominence, first as President of theSupreme Court of Justiceand, after beingthrownintoprisonby his own President(Comonfort)who was afraid of theChurch and its fulminations,emergedmorepowerfulandmoredetermined thanever,being raisedtothe PresidencyoftheRepublicin 1858, he beingthenfifty-two yearsof age,and continuing fromthatdaytheworkof reformationwhichhe hadset himself to perform, ruatccelum.Thosewho blame the memoryof Benito Juarez, mainly onaccount of his harshness towards Maximilian, and thosereligiousthinkers whodeplorehis attacksuponthepowerofthe Church and all Church institutions, have but littleconceptionof the shockingstate of affairs whichprevailedinMexico in the middledaysof thelast century, mainly, if notentirely, the fault of theRoman Catholicswhowere then incontrol of thegovernment.Much controversyhasprevailedamonghistorians in regardtothepersonality of Benito Juarez, who has beenregardedasno military adventurer, but aprudentand honestlawyerwho hadmadehisway, bytheladder ofpublicservice, to thehead of theState.Althoughmanyprejudicedwriters havedenounced him, the prevailingopinionseems to be that hewasa thoroughly honest man, who wished torulerighteouslyand meet hisengagements.Inregard toEngland'sstandingat theperiod of theJuarez -Maximilian imbroglio,Lord Russellwrote toSir Charles Wyke, Britain'senvoyinMexico at thetime,"If the Mexicanpeoplebyaspontaneousmovementplacethe Austrian archduke(Maximilian)on the throne ofMexico, there is nothingin theConventionto preventit. Ontheother hand, we couldbenopartiesto a forcible interventiontothispurpose."Mr. Herbert Paul inhis "HistoryofModernEngland " writes inregardtoPresident Juarez veryenthusiastically." Being,"sayshe, "a veryshrewd,capableman, he soonperceivedwho his enemies were. He wasprudentand honest, and a painstakingand conscientiousruler."Inviewof all that is now knownandacknowledgedinregard to the conditionof Mexicobetween 1860and1870, andnowthat allparty-spiritand bitterfeelingsmay be said tohave diedout, Ibelievethat thegeneral opinionmay betakenasagreeingwiththatof Mr. Herbert Paul.12Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd4 MEXICOOF THEXXthCENTURYNot content with having wrung millionsof treasure fromthecountryat a time when the peoplewereabjectlypoor, andwhenevery pennyshould have beenputbackinto thelandfor their benefit, the variousreligiousorders were constantlystruggling amongthemselves for fresh possessions, andwereindeed united in butonesingle enterprise, that ofstealingasmuch aspossibleprimarily for their ownpurposesandsecondlyfor the useof their beloved Church.The Dominicans, to whose baneful influence thecountryowed thedreaded Inquisition, were at constantloggerheadBwith theCarmelites, andtheFranciscans with both. It isimpossibletodenythat thereweremanygoodmenandgoodwomen tobe foundamongthese numerousreligiousbodies;but what theunfortunate Indians mayhavegainedon theone handby beingtended intimes of sickness andtrouble,theyweredeprivedof on the other, forall of thebrotherhoodsalike demanded and insisteduponreceiving tithes, whilenearly all the valuable landsthroughoutthe country werein their hands.Thepeoplehated the Dominicans with adeadly hatred, foritwas, as I have said, tothem theyowedtheterriblepersecutions inflictedby theHolyInquisition.The Carmelites, whohad been among the earliest of the"religios"to come toMexico, owned over a hundredleaguesof the finest land in theSan LuisPotosi district,stretchingfromthe city of thatnametoTampicoonthe Gulf coast. TheFranciscans owned othervast tractsof landstolen fromtheIndians or "bequeathed,"under threats of eternal punishment, by prosperous but sinfulsons of the Church; theirmonasteries and churches werelikewise more numerous and moreelaborately ornatethanthoseof anyotherreligioussect.Findinghis countryunder thethraldomof such a set ofharpiesandbloodsuckers, and knowing from the three hundredyears'-old historyof hispeoplethatnothing remedial was tobehopedfor fromSpain, Juarez maybeexcusedforwhatevervindictiveness he mayhave entertainedfor, andfor all thebitterness which hedisplayedtowards, theSpanishGovernment. Nowonder that, fromhispoorand ignorant youthupwards, hecherishedanintense hatredfor the doctrines ofa Church whichseemedto himtofattenuponthebloodandGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdFRAMING THECONSTITUTION 5substance of itspoordupes.Fromhis one fixedpurposetodestroy root and branchthe poisonousandperniciouspoliticalinfluence of the Church inMexico, Benito Juarez never fora moment wavered ordiverged.Hesucceededin his missionevenmorethoroughly thanhe could everhavehopedfor, andhis work will never be rendered nugatory nor hisexampleforgottenso longasMexicocontinues to exist as afree andindependent Republic.The memory of Juarezis very carefullypreservedin Mexico,and upon the occasion of his100th birthday(March21st, 1906),when I was inthe country, the wholeRepubliccelebratedthe event with marked enthusiasm, the day beingproclaimeda publicholidayandfree entertainments andpublicdinnersbeingorganisedbytheGovernment for thepoorerpeople.Asmost Constitutions aresupposedor atleasthoped tobe,that of Mexicowasproclaimedto issue "in thename ofGod and with the authorityof the Mexicanpeople."Thestrongestdeclaration, perhaps, wasthat " The Mexicanpeoplerecognisethat therightsof manarethebasis andtheobjectof social institutions. Consequently, they declare that allthe lawsandall theauthorities of the countrymustrespectand maintain theguaranteeswhich thepresentConstitutionestablishes."Continuing, thegreatnational document,which consisted of some 125articles, pointedout that"thenationalsovereignty resides essentially and originally inthe people, and is instituted for its benefit. Thepeoplehave at all times theinalienablerighttoalter or modifytheformof thegovernment."Herein the sense of the framers of the newConstitutionmanifested itself, particularly sincethey recognisedthatConstitutions grow, and cannotbemadetoorder.Any WrittenConstitution would be likelytoeliminate theadvantages possessedbythe flexible machinery of the UnwrittenConstitution. It would have tobe more or less of a compromise, and, consequently, uncertainin its interpretationandworking.While not preventingchange, it wouldserve to excitethepeopleand cause themto rushviolently to sudden andunreasonable extremes. It stands to reason that howevercarefully andelaboratelyaConstitution is drawnup byoneGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd6MEXICOOF THEXXthCENTURYgeneration, it mustproveirksome and unsuitableto a futuregeneration ; andthe United States of Americafoundoutverybitterly what it costs to amend a Written Constitution. Inallowing, therefore, therightto alter andmodify theformofgovernmentof Mexico, the framers of theRepublic'sfirst Constitutiondisplayedinfiniteprescienceandgoodsense.Proceeding inthismatter, the document stated :" TheMexican people voluntarily constitutethemselves a democratic,federal,representativeRepublic,composedof States free andsovereignin all that concerns their internal government, butunited ina federationestablishedaccordingtotheprinciplesof thisfundamentallaw."Then came some sweeping clauses, aimed principallyagainsttheRoman Catholic Church, to the effect that" nocorporation civil or ecclesiastical, whatever may be its character,denominationorobject, shall havelegal capacity to acquireinproprietorship or administer for itself real estate (landedproperty), with thesingle exceptionof edifices destinedimmediately anddirectly to the serviceandobjectof theinstitution. It is exclusively therightof the Federalauthorities to exercise, in thematters ofreligiousworshipand external discipline, theintervention which thelawmaydesignate."The Constitutiongoeson to abolish slavery, to establishfreeeducation, the freechoice by thepeopleof theirprofession or calling, freedom of speech,liberty of thepress,religioustoleration, therightof petition, of association andof carryingof arms. All titlesofnobility wereextinguishedandforbidden;punishmentby mutilation, torture or loss ofproperty was abolished ;corporationswere forbidden to acquireproperty forspeculative purposes; imprisonmentfordebt wasdisallowed if of a purelycivil character, andspecialclauses relatedtothe inviolability ofprivatecorrespondenceand the home. The deathpenalty for politicaloffenceswas also abolished, but nevertheless this punishmenthassince been inflicted,althoughperhapsunder a differentguise.As maybe seen, however, theConstitution wasframed inaliberal and broad-minded spirit, andit is thisConstitutionGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdFORMSOF GOVERNMENTwhich, withsome fewalterations and modifications, remainsinforceto-day.TheSupremeGovernment is divided intothree co-ordinatebranches Legislative, Executive and Judicial. Under extremeprovocationthe President, with the advice of hisCabinet andtheapprovalof Congress, or, during its recess,withtheconsent of theCongressionalPermanent Committee,maysuspendtheConstitution.Thefollowingtabulated List of Rulers will enablethe readerto tracetheformsof Government of Mexicofromthedateofthecountry's independenceof Spain, finally established onSeptember27th, 1821. I have intentionally includedthe datesandthe names ofeveryrulerRegents, actual andtemporary,Emperors,pretendedandappointed, Presidents, nominal andelected, Dictators, actual and assumed, since theyall formpartof the history of Mexico:Date. NamesofRulers. Nature of Office. Government.1821 1822 Gen.AugustindeYturbideDonJuan O'DonojuDon Manuel delaBarcenaDonIsidro Yafiez,and Don Manuel\1822deLeonDonAugustindeYturbideDon Isidro YaiiezDon MiguelValentinCount de Casa deHerasBrig.-Gen.NicolasBravo'Regents/Regency1822 1823AugustindeYturbide[EmperorMonarchial1823 1824 Don NicolasBravoDonGuadalupeVictoria, DonGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdMEXICOOF THEXXthCENTURYDate. Names of Rulers. Nature of Office. Government.1823 1829 Gen.GuadalupeVictoria\1829 Gen. VicenteGuerreroGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdFORMSOF GOVERNMENTDate. Names of Rulers. Nature of Office. Government.1844 1845 Gen. JosdIgnacioNHerrera1846 Gen. Mariano Paredes y Arrillaga-Presidents CentralRepublic1846Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd10MEXICOOF THEXXth CENTURYDate. Namesof Rulers. Nature of Office. Government.1864 1867 MaximilianEmperorMonarchial1872 Don Lerdo deTejadaDon Lerdo de 1872 1876 -PresidentsConstitutionalGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCHAPTER IIThepoUticalsituationThe Post-Diazpossibilities Reasonswhyperfecttranquillity is assuredPopularcontentmentGovernmentstrengthand preparednessLabour and prosperityAttitude of official classestowardsforeigners Popular suffrageThe Church andtheConstitutionThe Peoplecan be trusted.Madahe dePompadotjk'swell-knownexpression "apresnous ledeluge"would not seem toweighmuch withthepresentbodyof politiciansinMexico, whose soleconcernitseems is what isgoing to happen tothemandthe Republicwhen, in the ordinary course of things, General PorfidioDiaztakes his well-deserved rest. Thereare thosewho prophesyall sorts of trials and tribulations, and without giving anydefiniteortangiblereason for their gloomy forebodings,purposely close theireyestothe manypalpableevidences whichexist why nobouleversement should necessarily occur.Uponthe principlethat certain signsprecede certainevents,one looks around to discover, if possible, from which particulardirectionthedisturbing elements foreshadowed aretocomeandone looks in vain. If there isany lurking conspiracy onfoot to make troublewhenthePresidencybecomesvacant, itis but fair tosay that the mostdiligentsearch and the mostexhaustiveinquirieshave failed to manifest anyevidence ofitsexistence.On theother hand, there are, as I have said, innumerablereasons whythe country as a whole shouldacceptthe newposition, when it is presented, with placidity, since, toputthe matter in a nutshell, it isnot worthanyone'swhile tocreate adisturbance. Practically everybodyis doingwelland making money, or peacefully enjoying theprivilegeofspending what he alreadyhas. Whence, then, but fromthe ranks of the disaffected, is the threatened trouble to11Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd12MEXICOOF THEXXthCENTURYcome ? It would be extremelyrashtoassert that there arenodisaffected individuals inMexico, or that theGovernmentof thedayissoideal andsopopularthatno protestantsexistorcomplaintsare current. But because this is the caseinMexico, as it is the case inevery countryMonarchial orRepublican upon thefaceof theearth, noreason exists, inmy opinion, whytheinhabitants toany number shoulddesiretogoback to the bad old times of, say,twenty-five yearsago, andindulgeinarevolution which could have for itsobjectmerely thereplacingof an individual rather than theremoval of a system, and thusputback the clock somequarter-of-a-century ; this is to credit theMexicanswithfarlessintelligencethantheyreallypossess.It has beensaid withsome truth thatfightingis nolongeraprofession, at least with Mexicans, who haveenjoyed a nationalpeaceso longthat iftheyhave not exactlyforgottenhowtofight, they have at least lost the taste for fighting.TheArmy,consistingof some30,000men, is distributedover theface ofthe countrywell distributed, too, with sufficienttroopsinany oneparticularlocality to maintain order there, andwithin sucheasymeans of communication astosuccessfullyhandle anyorganisedor concealed uprisingno matter inwhat portionof theRepublicit originated.Moreover, railwaycommunication, the Government telegraph systemand the excellentIntelligence Departmentmaintained bytheGovernment, suffice topreventanythingapproaching asurprisebeing sprunguponthe country, aswasquite possibleacoupleof decadesago. Perhapsthegreatestreason of allagainst any organisedrising has yettobe adducednamely, the indifference of the people, as awhole, to politics.It isequallythe same tothepeons, whoform thegreatbulk of the population, who sits in thePresidential chair, or who maybetheMinisters who formtheChiefMagistrate'sCabinet. They have to pay their taxespreciselythe same, no matterwhorules at Chapultepec, andso long as they are earning sufficient to fill their stomachswithtortillasand frijoles(andat noprevioustimeweretheyso well off for means to obtain these two much covetedpossessions), theyareperfectly willingtoabstainfromrisingsand revolts.Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdPEACEFUL CONDITIONS 13While Mexicoispractically undera Dictatorship to-day, somildandso unaggressive is thatformof ruleand so little arethepeopleable todistinguishit from the freest of freeRepublicanism, that ifyoutold anyordinarypeonthat hewas being ruled by anautocrat hewouldprobablyreplythathelikedautocrats, andfeltperfectlysatisfied togoon as hewas. Youcannot enthuse apeonexceptwhere hispersonalwantsand beloved religionare injeopardy ; and since, as alreadystated, thecondition of the labour market is better thanithas ever been before, fromthelabourers'pointof viewbienentendu, and, as a consequence, the larder isalwaysfull ;and since thePresident'spersonalinclinations towards theChurch are toleave it alone, and not to either favour oropposeit,thepeoplehave reallyno causeofgrievance uponwhichagitators could buildany popularcry, andwithout thatnocausecould prosper in a Latin-Americancountry.Where, then, Iagainask, are the recruits to come from ?What pay that couldbe offeredthemwouldequalwhat theyareearningby thepeaceful pursuitof theirvariouscallings?And from whosepurseor pursesare the war fundsto spring ?Assuredly not fromthe wealthyhacendados, whohaveto-dayeverything to lose and absolutelynothing togainfrom apopularrising, since their estates would be the first to bedevastated and levied upon, their workmenpressedintoservice andtheircropseitherdestroyedor seized, their cattlestolen and their houses invadedbya roamingsoldiery.Notfromthe official classes, who woulddiscountenance anythinglikely to interfere with theirpresentemoluments andwell-secured billets. Norfromthe wealthy foreignelement, whohave so many millions invested in the country, and whowould haveso much to lose were any disturbance of the existingorder of thingstocometo pass.There isno " second-party"to cause anytrouble, and nopossibility of itsucceeding ifthere were one. Thus, thebugbearof revolution may bedismissed as practically non-existentexceptin thehighly-imaginativeminds of those Cassandras whohave been thusprophesyingfor the last 10yearsand more, in facteverytimethat President Diaz has talkedof retiring or wheneverhe hassuffered from a cold in hishead.At the next Presidential election, after General Diaz'regimeGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd14 MEXICOOF THEXXth CENTURYis ended, therewill probably be three or morecandidates ; butno oneneed anticipateany troublefromthat. Thebest andsurestwaytomaintain tranquillityand contentment amongthepeopleistogivethem an opportunityof exercising theirvotesat thepollswithout anysort of interferencewhatever.Theywillnot abuseit.There will bepractically twopartiesinthepoliticalarena,the Liberal Union, whichrepresentsthegreatintellectualandculturedclasses andthe more advanced thinkers of themiddleclassesfora decidedmiddle-class, formerly unknownin Mexico, has of lateyearscome into existence and theConservative or Clerical Party, probably themorenumerousbecause it admits the wholeof the lower classes, who arestaunchsupportersof the Church. Butevenif the Clericalpartydoes regainsomeof its lostpowerin politicalmatters,the daywill never arrive when thenation will consent todenationalise the property of the Church, norpermitanyrecurrence of theabsorptionof thepeople's earningsfor theserviceof Rome. The basicprinciplesof Mexico'sConstitutionhaveprocuredfor herpeopletheextinction of theciviland ecclesiastical mortmain; theinviolateness ofpersonalpropertyofevery kind; the freedom of human labour andtheprohibitionof crushingmonopolies; theabolition of the" alcabalas "(octrois)andinternalcustoms'dues; theannualrevision of taxation andits limitations to publicrequirements;andnumerous other equalbenefitswhichfew so-called "free "Republicsinrealityenjoy.With the increasedamount ofeducation nowproceedinginallpartsof the Republic, thepeopleare learning, especially the rising generation, toappreciatethemanifoldadvantageswhich their Constitutionconfersuponthem, and concerningwhichthey have for somanyyearsbeen either woefullyignorantor astoundinglyindifferent; and I feel assured thatwhenthetimecomesforsuch demonstration, thepeopleof thisRepublicwillprovethat theycan intelligently exercise their ideas andsuffragesandput into execution their desires without undue displayofpassionor loss of self-esteem. Thecountry must learn todependuponitslaws and not merely uponitsmen; it mustawake, asit will awake, fromits long andpeacefulslumberunder thedominance of one powerful but beneficent individual,who cannotalways be withit.Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdSENOR DON JOSE YVES LIMANTOUR,MNISTER OF FINANCE.SENOR DON A.ALDASORO, SUB-SECRET ARIODEFOMENTO.SENOR DON RAMON CORRAL, VICEPRESIDENTOF THE REPUBLIC AND MINISTER OF THEINTERIOR.SENOR DON JUSTINO FERNANDEZ, MINISTEROF JUSTICETheCabinet,SENOR DON IGNACIO MARISCAL, MINISTEROF FOREIGN RELATIONSGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCHAPTERIIIMaximilianEmpireEarlydaysof MiramarNapoleon'sambitionCarlota ofBelgiumAcceptanceof Mexican CrownArrival atVeracruz Receptionbypeople Troubles anddifficultiesRepublicv. Monarchy Divine rightofKingsDefeatof MaximilianBenitoJuarezand thedeath sentence Treacheryof ManuelLopez Crueltyof EscobedoExecution ofMaximilian.One of thesaddest incidentsrecorded in thepagesof Mexicanhistoryis theexecution of theEmperorMaximilian.Apologistshaveattemptedto provethat theremoval of thisunfortunateprincebydeath was necessaryfor thewelfare of theState; butit was inmyopinionas unnecessary aswas theactcommittedby ourownpeople inexecuting KingCharles I.in 1649 orbythat of France in the assassination of KingLouisSeizein1793.It is notnecessaryto believe intheDivinerightof kings,the insistenceupon which doctrineinactualpracticemainlyled toCharles'death and James II.'s abdication, to sternlydisapprove of theviolence offered to thosewhohavemerelyblunderedintheir office without anycriminal intent. Noone who is acquainted withthe true historybrief andbloodyas it provedto beof Maximiliancanpretendthat hecommitted any criminal actwhichcouldbedeemedworthyof thedeathpenalty.This is noplacetoarguethe theories ofMiltonandAlgernonSydneyand Rousseau anymore thanthephilosophyof Hobbesuponthesubjectof DivineRight.Let those whowill debate thematter; Maximilian himselfcertainly cherished nodelusionsuponthe question, and hewas fromthefirstagainstaccepting theprofferedthroneofMexico at all. He, however, wasa merepuppetin thehandsof his proudand ambitious wifeandtheplacidinstrument inthoseof the intriguingNapoleon III.,allowinghimself tobe15Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd16 MEXICOOF THEXXthCENTURYusedfortheaggrandisementof theone and the gratificationof the madpoliticalambitions of the other. Likeolder andbetter andwiser men, the lucklessAustrianprincefell to theground, but healsobroughtdownhisunwisecouncillors withhim.It isasadand sorrowful story, that of thesecondattemptatEmpirein Mexico, the first, viz. that institutedbyYturbide, ending inthat individual's death at thehands ofhissubjects, as did the secondalso.Maximilian wasborn in1832, and wasthe youngerbrotherof thepresent EmperorFrancisJosephof Austria. Hemarried thebeautifuldaughterof KingLeopoldI. of theBelgians, Princess Charlotte Am6lie(" Carlota"), and asister therefore of the reigningKing,LeopoldII. , of theBelgians.Hewas relatedbybirthandby marriageto halfthe reigningSovereignsof Europe, viz. theEmperorofAustria (his brother), Queen Victoria of Great Britain (hiscousin), theKing of theBelgians(his brother-in-law), theQueenofSpain(his cousin), theKing of Italy, the KingofSweden andNorwayandthe Emperor ofGermany.At the timethatNapoleon III. offered himthe crown ofMexico, the Archduke Maximilianwas livingpeacefullyandcontentedlywithhishandsome wife at the Castleof Miramar,onthebeautiful Adriatic Sea, aperfectlyidealplaceandonewhich it is easy tounderstand his reluctance inleaving.Theroyal pairhadalreadyhad some littleexperienceof aCourt, since, for two years, they had beenViceroyandVicereine of Lombardy, that troublesomeprovincewhichAustria hadthenunder her thraldom, but which, ashistoryrelates, wassubsequently madepartof theKingdomof Sardiniaas the result ofMagentaand Solferino.At the Court of Milan, Maximilianand Charlotte hadlivedso extravagantly that theEmperorof Austria found it expedientto remove them, andit was thereforeall themoretemptingtobe offereda realcrownelsewhere,althoughitwasthat of a country absolutely unknown to either of them,thousands of miles distant and inhabitedby apeopleasdifferent intheir habits,appearanceand inclinations as theopposite poles.However, allarguments againstthe follyofaccepting theproposalsof Louis Napoleon, which wereGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdDEFEATOFMAXIMILIAN 17urgedboth by theEmperorFrancisJosephand otherwell-wishers, failedagainst theexpresseddesires of hisambitiousandglory-loving wife. Soto Mexico went Maximilian, havingpreviouslypaida series of farewell visits to theCourts ofEurope, where heandhisnewly-made Empresswerereceivedwith fullroyalhonours andlavishly entertained. The twoSovereigns, havingleft Europeon April14th, 1864, arrivedatVeracruz on May 29th, and were receivedwith extremecoolnessby thepeople.Making theirway to Mexico City,theyentered theircapitalin state a fewdayslater, and weresolemnly crowned intheCathedral, having previouslybeenanointedwith fullpontificalceremony at their Castle ofMiramar, inthepresenceof the Members of the MexicanAssemblyof Notables.Troubles commenced almost immediately to accumulatethickly around the doomedroyalhouse. Neither Maximiliannor theEmpirewas everrecognisedby the UnitedStates of America, andfully two-thirds of hisown " subjects"repudiatedhimandclung tenaciously to theRepublic.Itseemed easier forNapoleontoplaceanEmperor uponthethroneof the country, whichhe fancied he hadsubdued, thanto keephim there. Immediately the Frenchtroopswerewithdrawn,justasmighthave been expected, Maximilianfound himself surrounded byenemies and almost destitute offriends. TheEmpresshadgonetoEuropeto raise bothmoneyand sympathy; but she failedinboth. Maximilian,after being desertedfirst by oneGeneral andthen by another,finallyfoundhimself a prisoner shutupatQuerelaro, withatleast20,000men arrayedagainsthim, and not five hundredheartandsoul for him.OnMay15th, 1867, the end of his brief andingloriousEmpirecame; for on that day the successful Republican,General Escobedo, took Queretaro, assisted by the basetreachery of Maximilian's own commanding officer, ColonelMiguel Lop6z.Iamassured by reliableauthorities that thissameLop6"zwas literally a second Judas, for he sold hisEmperorfor the sumof20,000silver pesos, which wereactuallypresentedto himonthedaythat thetownofQuer6-taro fell to General Escobedo. Furthermore, I amassuredthat, in payingover thestipulatedamount ofblood-money tovol. i.2Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd18 MEXICOOF THEXXth CENTURYhim, thedeputy to whomwasassignedtheuncongenialtask,carefullyrefrained fromtouchingthehandof Colonel Lop6z,thebetrayer.Onecanreadilyunderstandthat.Maximilian formallysurrenderedhimself toGeneral Escobedo, by whom he was treated veryuncivilly, and evenbrutally.In companywith his two trustyand devotedGenerals,Mejiaand Miramon, he was summoned in duecourse toappearbefore the Court-Martial which had beenhastily convened at the Teatro de Yturbide, at Queretaro.Theex-Emperorflatlyrefused, and in his absence both heand hisadherents (who attended thetrial)were unanimouslycondemned to be shot on the followingmorning, June15thThe execution was, as a matter of fact,postponedfor threeor four days, duringwhich timeheroic efforts were made tosave the lifeof this unhappyprince; but allunavailingly.President BenitoJuarezcould have savedhim, but would not.PerhapsPorfirioDiaz would have saved him, but couldnot.ItwaswithJuarez thatthe finaltheonlyappeallay; butthe "Indian"President was an obstinate andan unmovableman,deeplyincensedagainstMaximilian personally, andnothingthatcould besaidordone orsuggestedinducedhimtoswervefora single moment fromhisoneset purpose.And so, onthe morning of June19th, 1867, at the foot of agentle slopeof the Cerro de las Campanas, at Queretaro,Maximilian of Austria, inthe35th yearof his age, was donetodeath.Theplacewhere he suffered is visitedduring the courseoftheyearbythousands of tourists, andseldom isanyexpression but one ofregretat his execution heard to fall fromtheirlips.It is achapterinthelife of thecountrywhichought never tohavebeenwritten.Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCHAPTER IVPopulationstatisticsForeignersin MexicoUnitedStatesconquestsandannexationsTexanRepublic Relations between the sister republicsWhat the Mexicans owe to theAnglo-SaxonracesValue ofAmerican influence in Mexico AppreciativeMexican commentForeignersandtheir lack ofgoodtaste A plea forbetter behaviourAnAmerican criticism Foreignersin Mexicofifty yearsago.According tothe latest particularsavailable, and, at the outset, I must confess that censusfiguresare very difficult toobtain from the authorities, and, whenobtained, aresometimesunreliable, there werelast year(1906)some 65,000 ForeignersintheRepublicof Mexico. The nationalities most numerouslyrepresentedwere inthe followingorder, andcomparewiththe total of57,082 in1900, thedateof thelastcensus.Census ofFigures(esti1900.mated)1906.United States 15,265 17,080Guatemalan ...5,804 5,460OtherAmericans3,379 3,695Spanish 16,258 16,770French...3,976 4,010British...2,845 2,900German 2,565 2,850Italian...2,564 2,700Other Europeans 1,592 5,785Chineseand JapaneseTotals2,834 3,75057,082 65,000Itwill be observed that while theUnited States citizensincreased tothenumber of some 1,700, theBritishhardlymoved; while the French, German, and Italiannationalitiesfluctuated but very little. On the other hand, "Other192-2Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd20MEXICOOF THEXXth CENTURYEuropeans,"which include thegreatlyincreased number ofresidents fromSweden, Norway, Denmark, andGreece, movedconsiderably, and on the whole show anaugmentationofclose on4,200.I have taken no note of thethousandsofUnitedStatesandother tourists who annuallycometo Mexico,and of whose movements,exceptinbulk, the Governmentofficials showno recognition.Nodoubt the estimatedfigureswill be found to be very"rough,"when the careful andsystematicCensus returns are takenin1910 andpublished.But for a fair andaverageidea, thesereturnswill serve. Theentirepopulationof Mexicoin1810,whenBaron vonHumboldt visited the country, was little over 6,500,000, sothatwithin, say, 90 years, it has practically more than doubleditself, it being in1900declared at13,605,819.There is very littleimmigrationfromMexico, andwiththeexceptionof the JapaneseandChinese, whocomeover in greatnumbers withtheideaofcrossing intothe United States, andwhich they manageto dowithor without thecognisanceoftheAmerican officials, theemigrationinto the countryis inconsiderable. In allprobability the Census of 1910 willshow a totalpopulationof little under 16,000,000, whichmay notbedeemedunsatisfactory.Let us see how Mexicocompareswith otherSpanish-AmericanCountriesin pointof population, theareainsquaremilesbeingconsidered.Name of Country. Population.Area in SquareMiles.Mexico... 13,605,819 767,060Argentina 4,625,000 1,117,060Venezuela 2,075,000 599,360Peru 4,610,000 713,670Chile 3,147,000 307,683Uruguay965,000 72,153Bolivia 1,853,000 983,980Columbia 3,879,000 504,770Brazil ... 14,334,000 3,218,170The nearestapproachinarea, it will be observed, is Peruwith713,670 squaremilesagainstMexico's 767,060, and yettheproportionof thelatter'spopulationis3to1. GiganticGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdMEXICOANDTHEUNITED STATES 21Brazil, withmorethan 4 times the area, has barelya millionmore population; whileArgentina, with350,000more area,has8,980,819fewer in population.On the whole, then, whileMexico'sgreat hopeis to increase her population, and sheofferseveryencouragementwith this ulteriorobjectin view,theRepublicstandsextremelywell incomparison with anyother locatedin thesamepartof theworld.Onceupona time Mexicowasjustone-half asbigagainasshe is to-day; there are thosewhoopenly expresstheir fearthat in due courseof time that remaining half will followwherethe first wentnamelytotheUnited States of Americaandbecomepartand parcel of the " StarsandStripes "; but theyhave little reason for theirapprehensions.The United States are credited rightly or wronglywithoncehaving entertainedthat tenderregard for Mexico whichthegreedy wolfprofessedfor little Red Riding Hoodandherfamily connections ; but whatever ideas inthisrespectmayhaveprevaileda decade or two ago, it is certain that nonebut themost friendlyfeelingsbetween the twoneighbouringnations existto-day; whilethecommunityof interests is sofullyrecognisedbyboth alike as to renderanyaggressivepolicyupon thepartof either whollyimprobable.Fromfirst to last Mexicohas ceded to America little lessthanone millionsquare milesof territory, thatis tosaymorethanone-half of what she formerlypossessed.Commencingwith theseparationof Texas, Mexico lost362,487 squaremiles. Thiswas inthe year1835, while in February 1848,by theGuadalupe-HidalgoTreaty,522,568 squaremilesweregivenup, and in December 1858,by the Gadsden Treaty,Mexico abandoned afurther45,535 squaremiles, or, in all,some930,590squaremilespassedover to the United States,formingbynomeans theleast valuableof her possessions.The boundaryline between thetwo countries isabout thelongestfrontier in the world, and exceeds1,833miles. Inyears goneby, its delimitation occasioned muchtrouble,andon more than one occasion it looked as if serious contestwouldbetheoutcome. The discovery of valuableminesorwhat were then considered valuablewas the main cause,and with considerable cunning theinterestedpartieson theUnited States side shifted the beacon marks which,other-Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd22MEXICOOF THEXXthCENTURYwise, stood in favour of theMexican claimsto the ownership.Thetwo Governmentsproceededinthewell-knowndiplomaticmanner to " settle "thedispute by appointingCommissioners,as does ourownbeloved Government whenever it finds itself inan awkward predicament.First a convention wasconcluded atWashington, on July 29th, 1882; but it was not until the middleof 1883 thata preliminaryreconnaissance was madeby representatives of the two Governments, acting independentlyofone another. Theirreportswere pigeonholed, as are thereportsof most Commissionsall the worldover, and nothingcame of that convention. Sixyearslater, namely inFebruary1889, another convention were summoned, butit tookexactlyseven longyearsfor theirReportto bepresented, and inApril1896 the boundaryquestionwith theUnited States becameun faitarrange".Sincethen its utilityhas beenproved uponseveral occasions, the latestbeing in May of last year, whena filibusteringpioneerandhisfriendsnearly precipitateda rowbysummoninganAmericanarmed forcetocomeacross thefrontier andhelp himsuppress a,riotamong theworkmen at the mines,which the folly and brutality of his ownemployeeshadfostered. I refer more fully to this incident under theheading ofChapterLXXL, devoted totheMiningdistrict ofCananea (Sonora).Recruitsfor revolutionary movements have oftentimesbeenfoundinAmerica, as, for instance, when Francisco JavierMina raised the banner of revoltagainsthis own King(ofSpain) in 1817, securing the services of 500 Americans tohelp him; whileboth BenitoJuarezandPorfirioDiaz foundsympathyandpracticalaidinthat land ofhospitalityandrefuge, at the timeof theirgreatestneed. TheUnited Stateswas, withEngland, about the first nationto recogniseMexicoas anindependent country, whichevent tookplacein1825.Thelong-brewing trouble between the United States andMexico commenced by the formerinciting orat leasttacitlyassistingTexas to revoltagainstMexico, much about thesame policy beingthenpursuedas was later onallegedtohavebeen followed inregardtoColombiaand Panama. Itisperfectlytrue that the Texans had, by separating fromtheRepublic, established aseparatecountryanda little RepublicGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdy.sGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdMEXICO'SLOSSOF TERRITORY 23of their own. Perhaps, had America not interfered, the Texans'nineyears'separation, broughtabout under theleadershipofan American named Sam Houston, wouldhaveautomaticallyterminated by the Mexicans retaking thisextremely valuablepartof theircountry.ButtheUnited States, as I have said,assisted Texas, not only to tear itself free of Mexico, but tobecomepartof the Union States, beingincorporatedas oneof them in1844.Texas alone has anareaof some265,000 squaremiles andapresent populationof over3,000,000.Itsagriculturalpossibilitiesareunbounded.Thesamepoliticalmove was madeinregardto California,which, underexpressorders from Washington, was incited torevoltagainst Mexico in1846, anddidsowith goodeffect, theinciteragain incorporating theseveredterritoryin theUnion.Thenfollowedaseries of assaultsupon Mexicantowns whichtheMexicanswerepowerless,struggleas they might, to resist.The well-trainedarmyand navyof theUnited States, underthe brilliant leadership ofCaptain(afterwardsGeneral)Fremont, Commodore Stoat, Commodore Montgomery, andGeneral Winfield Scott, worsted the Mexicans ateveryturn.California was lost to them ascompletely as Texas, and atlengthapeaceknown as the" Guadalupe-HidalgoTreaty "was compulsorilysignedbythedefeated Mexicans, and theUnited States, in" exchange"for the trumpery sum of$15,000,000(about 3,000,000), annexed morethanone-halfof the entire Mexicanterritory, afterwards holding its handuponits heart and proclaiming to the rest of the world:" You see how honourable we are even at the time ofvictory."Thecountryfor which the United Statespaid $15,000,000was worth then$150,000,000, and thevalue is to-dayalmostincalculable.Whatever other historians may think of thisact of annexation, the Americans themselves longago learnedtheopinionof one of theirgreatestsonsGeneralUlyssesGrantwhohas publicly affirmed that" this was the mostunjustandmost unholywar everwagedby astrongernationagainstaweakerone."All that tookplaceinthese stormytimes, however, whenGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd24 MEXICOOF THEXXthCENTURYmencould not be expectedtoweigheveryword that fell fromtheirlipsnorsubmittoeverypoliticalaction being examinedthrougha microscope, hasgiven placetofeelingsof trust andfriendshipbetweenthesister nations. The friendlyfeeling,deep and sincere,expressedfor the United States of Americaby President Diaz cannot be doubted. He has himself frequentlyreferred to his sentiments on the subject, notablyasrecentlyasMarch, 1907, when he publiclyobserved :"lamgreatlyencouragedto receiveexpressionsofapprovalfromcitizens of the United States. I amalways gladto seeAmericans,gladtogivethemeveryassistance inmypower,as we feel we are indebted to thenativesof that country inthepastand at thepresenttime for manythings."Whatreason there istosupposethattheopinionsof the Presidentor the countryhaveundergoneany reaction, I cannotsee.Spanishwriters havefrequentlyadmittedthat, but fortheAnglo-Saxonrace cominginto South and Central America,andbringingtheirgreatresources andintelligenceto bearuponthewelfare of theSpanish-Americas, their landsmightstill be in thedepthsof commercial inferiority, and theirfinances practically non-existent. In my volumeuponSouthAmerica(" ThroughFive Republics "),* I mention, onp.461,thefollowingtestimonyto thiseffect:" Underlying thepetty native jealousiesandnotinfrequentoutbursts ofspitefulcriticismlevelledagainst Britishinterests,there exists in the different States of South America theknowledgethat British brains, British money, and Britishespritdecorpshave loomed largely inthe building-up ofthese countries, while, tousetheexpressionof a sympatheticSpanishnewspaper,publishedin Argentina, andnot usuallygivento praiseof itsforeignresidents,'Thisgreatcivilisingpowerhasleft uponus a deepandlastingimpression, clearlyrecognisable.' "What the British have done, and aredoing, forArgentina,theAmericans have effectedfor Mexico. It is significantthatwhile theSpanishinfluences aregradually butsurelydying-out, and the Frenchwereinsufficiently long in the countrytohavebequeathedany, American I shouldperhapssayAnglo-*"ThroughFive [Republicsof South America(1905)."(WilliamHeinemann, 21, Bedford Street, London.21s.)Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdTO EMULATE ANGLO-SAXONS 25Saxoninfluenceis gaininggroundeveryday.In numerousdirections can thisbe observed, andalthoughit would beuntrue tosaythatthisinfluenceis invariably forthebest, onthe wholethere can be no doubt that Mexicowouldhardlyhave attained herpresent recognised supreme positionamongSpanish-Americannations but for theadvantageswhich herforeignelement has succeeded in introducing, andthat without in any way meddlingwiththecountry'sinternalpolitics.In thought, customs andforeignrelations theRepublichasundergoneanalmostcomplete change; andalthoughthetransition has been tardilyrecognisedand strenuously objectedto bya certain section of theultra-conservative element, itistoolatetostemthestreamof reform whichmust continueto flowuntil all old and useless forms of government, allremnants of effete and worn-out social anomalies havebeencompletelyswept away.Theeffect of theforeignelement inMexicohas been, as all unprejudicedMexicans readilyadmit,much thesameas that referred to by Daniel Webster inhisfamousspeechon Hamilton :" He smote the rock of thenational resources, and abundant streams of revenuegushedforth; he touched the deadcorpseof Public Credit, and itsprang upon itsfeet."A Mexicanwriter, Mr. Manuel M. Alegre, has borne willingwitness to the benefits accruing fromthecountry'scloserconnection withAnglo-Saxonmethods and ideas, and statesthat if the Mexicans wouldpreservetheirnationality theymust do as theAnglo-Saxonsare doingintheir countries.Theyhave shownthemselves theruling-raceof the modernworld, andMexicansmust displaythesamevigilanceasthey,the same inexhaustible mental activity, the sameenergy forwork and love of order andliberty.These arequalitiespossessedinagreateror lessdegreeby all peoples, and inMexico they butrequireawakening to life. Mr. Alegreadvises hiscountrymenthat their duty is to free the stillpartially-paralysednational mind and stimulate the activefaculties of theNation, widenits instruction and its socialvision, in order that it may clearlyperceiveitspresentconditions and itspossibilitiesin the near future. Thisshould be the dutyof thecountry'slegislators, its teachers,Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd26 MEXICOOF THEXXthCENTURYits journalists, itsphilosophersand itsspiritualdirectors, aswell as all leaders of publicand private intellectualagencies.Abundant evidence is forthcomingineverydirection thatthis sound advice is beingtaken to heart, andthatAnglo-Saxons and Mexicans are uniting in their ideas, theirgeneraltendencies and habits of daily life moreandmore.Several additionalgenerationsmay berequired, perhaps, tocompletethe transformation, but it isproceedingand in theproper direction.Any and everyold-established country,I suppose, whichpossessesa history, traditions andhoary-headedrelicstoallof whichitspeoplesattach reverence andrespect has had toundergothepainfulordeal of the scoffsandcheapcynicismsof the prowling tourist. Manya timemyangerhas beenaroused by overhearing the crudeandsenselesscriticismsuponsomeof ourgreatestmen buried in Westminster Abbey, thatnational shrine to which all Britisherspaydevotion,duringeven divine service. The same thing has occurred at theTower of London, at St. Paul's Cathedral and atHolyroodPalace. I have, on occasions, hadto blushfor shame at thesame lack of respectpaid to the silent denizens of the Pantheon,in Paris, by a partyofEnglishtourists; and Mexico, withitsincomparable collectionof hallowed spots, its uniqueassociationsandits intenselyromantic surroundings, cannothopetoescape the common fate in the form of the jeers of the thoughtlessandtheloud-voicedcriticisms of thelower-class touristswhoarenow swarmingover hersemi-sacredground.If there is anything moreobjectionablethan a Cockneytripper(and I very much doubt whetheryoucanfind it !)itistheYankeesight-seer.I reallydo not knowwhichof the twois the more intolerable, but bothpursuethesame methodsofrendering themselves offensive to the inhabitants ofthe countries whichthey periodically afflict with theirpresence, and both deserve to be rigorously excluded fromentrance to all holyor hallowedspotsunless theycanlearntobehavethemselves withbecoming reverence.Fortunately thegood peopleof Mexico understand but very littleEnglish,andconsequently agreatmanyof theribald remarks whichfall fromtheminChurches,galleriesor onbattle-fieldswithalmost sacred associations, fail to affect thehearers. ButGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdTHEMETHODS OF TOURISTS 27the Mexicans are not fools by anymeans; and if theycannot understand the words uttered they can,and do, atleastapprehend thebroad significance,therudegesturesandthe coarselaughwhichaccompany them, and manyatimethe careful observermay have seen the sensitive nativeswince at thelack ofsympathy andopen contempt evincedby theforeignvisitors to theircountry'smosttreasuredshrines.The absolute indifference thus shown by some of thesetourists for the susceptibilitiesof the "poorIndian "whoforall his rags andtatters carries a proudandpatrioticheart, anda deep reverence for his fatherlandis almost inconceivable.Isit because some carelittlefor tradition, have no historyof their own, no treasure-house of oldassociations and fewfamilypedigreesthattheyare soproneto scoff at thosewhohave?That I may notbe consideredprejudicedor insular inmyremarks, I willquotefromanAmerican traveller, Mr. JohnC. VanDyke, who writesas followsuponthe eccentricities ofsomecountrymenin Mexico:" Of course, Mexicois not theUnited States ; and that usually breaks the heart of theaveragetravelling American. He misses his tourist hotel,his bath, his drive in the park, and his American cocktailbeforeluncheon. Nothingcompensateshimfortheselosses.He grumblesat everything, andairs hisviews to clerks andporterswhounderstandnota wordof English.Hedoes notlikethehotel,though it would puzzle himto find a better onein any town ofequalsize in the United States. Hesmiles attheheavy adobehouses, not realising that theyare built forprotection againstthe heat; for comfort, not looks. HethinkseveryMexican a" greaser,"thoughhe cannot matchhimin courtesy, kindnessorgenerosity.Andeverything isso" slow,"with nosenseof"business,"as thoughrapiditywere avirtue instead of a nervous manifestation, and asthoughbuyingand selling were thebreath of life inone'snostrils. I have heard similar fault-findingin EuropefromAmericans who hadpassedmost of their lives in Kansascyclone-cellarsor Coloradodugouts.Those whohave livedin Mexico for yearshave much to sayinpraiseof Mexicanlife. Thereisa greatdeal tobe learned from it,and certainlyGenerated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd28 MEXICOOF THEXXthCENTURYitis not tobesneered atby theaveragetravelling American,who istooapt tobea shallow-pate."Mr. VanDykeevidentlyfeels stronglyon the subjectof theconduct of some of his countrymen, anddoesnothesitate topronounce hisopinion, an opinionwhich will be endorsedbyall our right-thinking and reverent-minded Transatlanticcousins, of whom, I am pleasedto remember, I have metmanydelightfuland culturedspecimensin myworld-widetravels.Writingonthe subjectofforeignersinMexico some40or50 yearsago, Madame Calderonde la Barca, wife of the FirstSpanish Minister to Mexico, states that" Germans of a certainclass do not seemtobe sufficientlynumerous, and the FrenchinMexico, barring somedistinguishedexceptions, areapttobeamongstthevery worstspecimensof thatpeoplewhich'leplaisant paysde France'canfurnish forth."Of the Britishresidents the same candidcritic observes "Withveryfewexceptions(andthesein the caseofEnglishwomenmarriedtoforeigners) they keep themselves entirelyaloof from theMexicans, live quietly intheir ownhouses, into whichtheyhavetransplantedas muchEnglishcomfort as possible,rarelytravel, andnaturally find Mexicothe dullest ofcities."But thishasall beenchangedsincethen.Mexicohashad inthepast, andno doubt will again haveinthefuture,goodcause tocomplainof the"kindness"of itsfriends, who sometimes for a consideration and sometimeswithout, come down principally fromtheUnited Statestakea casual look around(their visits varyingfrom twenty-fourhours to a whole week), andthengoback to their nativecountryand write "abookupon Mexico."TheMexicans themselvescomplainbitterly about this incurable propensity upon thepart of their powerful neighbours,declaring thatwhether theso-called"book"be favourable orunfavourable,friendly or unfriendly, it is usually so inaccurate as to do the countrymore harmthan good, and bycreating a totally erroneousimpressionof theRepublicandof itspeoplemakes them more enemies thanfriends.While in MexicoCity and other large citiesof the Republic,Englishis fairly- well spokenamong thebetterclasses, outsideof thoseplacesvery little is understood of theAnglo-Saxontongue.Afew words arepickedup by mercantile-clerks,Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdFEWLINGUISTSTOBEFOUND 29street-vendorsandnewsboys, while some of thecommercialclassin MexicoarelearningEnglishforcorrespondence purposes.ThePresident understands very little of theAnglo-Saxon tongue, or ifhedoeshesteadfastlyrefuses tospeakit.On the other hand, MadameDiaz isa fluent Englishspeaker,and writesthelanguagewithremarkableaccuracy.Of themembers of the Cabinet, Sefior Mariscal, Minister ofForeignRelations, is a very good speaker, whileSenor J. Y. Limantour,theFinance Minister,speaksand writesEnglishas fluentlyas FrenchandSpanish.TheGovernor of the Federal District, DonGuillermo Landa y Escandon, whowaseducated atthe JesuitCollegeof Stoneyhurst, is another fluentEnglishspeaker, while Senor Aldasoro, Sub-Secretario de Fomento,canspeakEnglishwell enough, but prefers, outside Spanish,toconverse in French,of whichhe isa thoroughmaster.Englishis taught in manyof thepublicand agreatmanyof the privateschools, andin all familieswhereprivate tutorsare charged withthe education of the children. On theotherhand, manyresidentAnglo-Saxonsin Mexico areproficientSpanishscholars, so far as conversation is concerned, but itisseldomthat one is encountered who can write a letter inaccurateSpanish.I have metforeignerswho have lived16 and 18yearsin Mexico City, who have hardly beenable toexpressthemselvesintelligently in Spanish, andwho, inanyother country whosepeoplewere less lenientandcourteous thanthoseof Mexico, wouldhave beenlaughedatandridiculed.Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCHAPTER VGovernment LegislativechambersThe CabinetJudicialpowers Stategovernmentsand judiciaryStates and theirgroupings-Ministerialdepartments Ministers and thepublic The FederalDistrictGovernment TheArmyRurales de laFederacionTheirequipmentand organisation Remodelling of theMexican Army andNavy Departments.ThePresident of the Republic, whois thesupremeexecutive power, is elected indirectly by electors chosenbythepeople.Histermof officeis for four years, and, unlike theRepublicsof Argentina, Brazil and Chile, he may be reelectedindefinitely.Thiswas notalwaysthe case, but theConstitution was amended on December 20th, 1890, toadmitof thisbeingdone. ThePresident must be aMexican-born,notlessthanthirty-five yearsof age, mustnotbelong toanyreligiousorder, andmust bea resident of the countryat thetime of hiselection.The Cabinet consists of seven Secretaries, all heads ofdifferentDepartments ForeignAffairs; Finance; PublicWorks ; Industry and Colonisation; Interior; Justice andPublic Instruction ; and War and Navy.All theseMinistersmuBt be native-born Mexican citizens, and at least 25yearsofage.The President receives a salary of$50,000(5,000)perannum, and the Ministers$15,000(1,500)each.The idea that aRepublicshouldprovideanexampleinsimplicity of livingonthepartofits President is realisedbyGeneralPorfirio Diaz, who, except upon those Stateoccasionswhichdemand somedisplayand pageantry, passesanexceedinglyplainandunostentatious existence. His town house(No. 8, Calle Cadena), is one of a long line in anotultra-fashionable thoroughfare, containingbanks and othercom-30Generated on 2015-06-24 21:22 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdS-600 (1,200)Para,) 600 (1,200)Pernambuco,, 600 (1,200)Santos,, 600 (1,200)RioGrande doSul ,, 400 (2,000)Valparaiso Consul-general900(4,500),, Vice-consul400 (2,000)Canton ...Consul-general 1,200(6,000),, ... ... Vice-consul 600 (3,000)MukdenConsul-general900 (4,500)Paris Consul 800 (4,000),, ... ... Vice-consul 400 (2,000)Dantzig ... Consul 600 (3,000)HamburgConsul-general 1,350(6,750),, ... Vice-consul 400 (2,000)Athens ...250 (1,250)GuatemalaCity...Consul 600 (3,000)Kobev1,000(5,000)Mouravial(Liberia) JVice-consul 600 (3,000)Consul 800 (4,000)Christiania600 (3,000)Panama ... ,, 800(4,000),, Vice-consul 400 (2,000)CallaoConsul-general850 (4,250),, ... ... Vice-consul 400 (2,000)Bucharest Consul 700 (3,500)MexicoCity ,, 800 (4,000),, ... Vice-consul150*(750)Mr. Alfred L. M. Gottschalk, theAmericanConsul-Generalat Mexico, andwhowasappomtedonlylast year, is agoodspecimenof the active and enterprising NewYork businessman. Heis about 37yearsof age,having been born in1870.He enteredtheConsular Service in1902,his firstposthavingbeen at SanJuandel Norte, where he remaineduntil themiddle of 1903. Hethen went to Callao, inPeru, his rank*This salaryis paidoutof the Consul's salaryof 800.Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd144 MEXICOOF THE XXthCENTURYthere being Consul-General. Mr. Gottschalkhas seena gooddeal of South America and its trade, and this experience,combined with hisgreatnatural shrewdness and acumen,renders himvery fit tofulfil theimportant positionwhichhenow occupies. Apart fromthis, however, Mr. Gottschalk hasacted as oneof the NewYork Herald'sSpecialCorrespondentsin variouspartsof the world, thus gainingaunique amountofforeignexperience.Heis very muchesteemedinMexicoCity, and out of it.The German Consul, Dr. F. C. Rieloff, isthefirst to beappointedunder theremunerative system, andhisappointment is due to thenewaggressiveGerman Colonialpolicyinitiated by the Minister of the Colonies, HerrDernburg.Dr. Rieloff has secured about thefinest consular offices inMexico City, at 18 Zuleta, but his official residence is at3d. Denmark, No. 420.TheAmerican Consular Body inMexico isaltogetheranable one. Besides the Consul-General, Mr. Alfred M. L.Gottschalk, the U.S.possessin Mr.GeorgeH. Murphy averyactive andzealous official, enjoying thetitle ofConsul-at-Large.Heis one of the five American consuls who aremembers of a departmentof the consular servicebrought intobeingwith the beginning of thisyear.These consulsperformthe duties ofmspectorsof consulates, and they reportdirect to theDepartmentof State. They cover the wholeworld, eachbeing assignedaspecialterritory for the performanceof hisduty.ThespecialfieldassignedtoMr. Murphyis NorthAmerica, which, of course, includesMexico.Consul-General Hanna, who is located at Monterey, intheState of NuevaLeon, isyetanotherkeen, shrewd andenterprisingrepresentativeof the U.S.A. General Hanna hasseveralvice-consuls under him, andhis field is an exceptionallywideone.Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCHAPTER XVINational financeBudgetestimatesCompletenessof GovernmentfiguresMonetary reformHistoryofForeignDebtNational Debtappropriations Reproductive expenditure Character of bondsRelations withforeign banking-houses Amortisationprovision Gradual cancellation ofpublicsecuritiesTable showingMexicanGovernment and State Government loans, interest paid, dates ofpaymentand redemption.It has been a fruitful source ofcomplaintamongforeigninvestors inSpanish-Americancountries that the annualBudget-accountsare invariably fromtwotothree, and sometimes four,yearsinarrear. These critics donotalwaystakeinto consideration thefact that the countries referred to are, forthemost part, but poorlysupplied withthe means of internalcommunication,apartfromthefact thatSpanish-Americansare not inthe habit of hurrying themselves even ontheiraccount, and are less inclined to do so inrelation to theirforeigncreditors.This reproach, however, cannot beapplied to Mexico. Theaccounts, for instance, to June30th,1905, and theBudgetfortheyearto 1906-1907, were bothpresentedtoCongressinDecember of 1905, andtheBudgetfor 1907-1908 is veryup-to-date.There was no undue delayin completing theaccounts forthewhole of theRepublic, bearinginmind thephysicalcharacteristics and in some districts stillmeagremeans of communication.The accounts inquestionshow howexceedingly stable isthe financial condition of Mexico. The recentcurrencyreformismainlyresponsiblefor this encouraging state ofaffairs. The ablehandling of thecountry's financesbySefiorJ. Y. Limantour is also a verygreatfactor. Many hotdebates infinancial circles tookplacewhen this monetaryvol. i.14510Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd146 MEXICOOF THEXXth CENTURYreformwas first mooted, but Sefior Limantour, the astuteFinance Minister, adheredstrictly to hisoriginalideas, andhaslivedtosee themcarriedoutto themost successful issue.The minor inconveniences which thechangeof monetarysystemoccasionedprovedtobevery smallcomparedwith theimmense benefits whichtheybroughtintheir train. Thefortunate riseinthe value of silver also hadits effect, andabridgedthedifference between themarket valueof the whitemetal currencyand the international value fixed by themonetarylaw. Thefear that thenewsystemmightresult inacompleteorpartial paralysationof thenational industries,provedentirelyunfounded.Importduties now constitutenearly45per cent,of theMexican revenue, theproportionhavingrisen materially since therevision devised to shelternativeproducersfromthe intensifiedcompetitionofforeigngoodswhich entered theRepublicmore freely with a stableexchange.A furtherobjectachievedby the new tariff hasbeentofosterthe importationof articles which wereformerlyexcludedby theexcessive duties. It is abundantly clear that the increasedarrivals of suchgoodsbalance to a verygreatextent thediminution inimportson which duties have beenenlargedwithprotective objects.Thetotal volumeof inwardtradehasremained practically unaffected. Adecreasein theestimatedproduceof the modifiedtaxeslevied onminingpropertieshasbeenless in proportionthanthereduction intherate, becausetheFinance Minister calculatedand calculatedcorrectlythat an arealargerby15per cent,wouldcontribute. Andthis hasbeen the case.I have previouslyreferred to the beneficial effectwhichthecurrency reform introduced by the Mexican Governmenttowards theendof 1904, and whichbecamelaw in May1905,has had upon the commercialprosperity of the country; butI fear thattherearea greatmany who do notquiteappreciateor understand what thisreformreally amountedto. The BillfortheReformof the CurrencyLaws provided thatthe dollar(piso) will infuture contain 24*4388grammesof finesilverand2'6342grammesof copper,equivalentto 75 centigrammesof finegold.Withthe ratiothuslegallyestablished, and thesilver coinageprotectedagainst the fluctuations of silver bullion,Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCURRENCY REFORM 147Mexicohas a currencysystemwhich is thebest that ispracticableunderpresentcircumstances. It wasimpossibleforher toadoptthegoldstandard in its fullness, as it exists inthis country, for instance. Nevertheless, Mexico is,for allpracticalpurposes, on a gold-basis, because there isnow afixedratioguaranteed by lawbetweenher silver currencyandgold.Thecoinageand issue ofmoneyare reserved to theGovernment, and the newlaw authorises theGovernmenttoprevent or imposea taxontheimportationof Mexican dollars.Under the old system, whenever silver rose above thelegalparity, i.e. when the silverin thesilver pesocametobeworthmorethan75centigrammesof pure gold, a streamof Mexicanpesosleft thecountry.Bymeans of the newarrangementgoldiscoined, andenters more andmorefreely into circulation. Theresult of thiscurrencyreformhas been to benefitenormouslyallforeign-conductedenterprises, such asthe railways, whose troubleshad previouslybeen dueentirelytothecurrencyandexchangedifficultiesanddepreciation.If thesehave not been entirely removed by the reforms, whichgivesomethinglike a fixedgoldstandard to the Mexicandollar,they have been at least materially relieved. Already theprofitsof theleadingrailwaysof Mexicohave beenlargelyaugmented, and commercialdevelopment throughoutthecountryhasresulted fromthenewcurrency reform.Thechangewhich has comeover thefinancial conditionofMexico during thepastdecadeis, indeed, remarkable ; but Iventure to assert that itisnot a transient but apermanentchange.Not only is foreign capitalabundant, but nativecapitalcan be raisedto-daywith very little difficulty forinnumerable varieties of investment ;whereas less than aquarterof a centuryagonot asingleMexican would haveventured his money in anyforeign-controlledorforeign-associatedenterprise.The historyof Mexico'sForeignDebt commenced as farback as 1825, shortlyafter the countryhad wrenched itselffreefrom the Spanishyoke, andwas fairly launched uponthetroublous sea ofindependence.Two loans, both of whichwere raised inLondon, and bearinginterest at 5percent.,werethe first successful feats inborrowing.Unfortunately,thepromptnesswith which the loans were raised was not102Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd148 MEXICOOF THEXXthCENTURYreflected inthe method of paying theinterest whendue, andshortlybefore thedatewhen the first instalments were payable, notice of default wasgiven.Thepublicfinancesremained in an unsatisfactory conditionforseveral years, andin1851, after the war with theU.S.A., thetwo loans referredto wereconverted intoa newissue, interest at thesametimebeingreduced from5to3 percent. Onceagain, however, thecountrywas unable to meet its obligations, and it was notuntil some thirty oddyearsafterwards, namely in 1883,that a furtherattemptwasmadeatadjustmentof the ForeignDebt. Conversiontookplacein1885 insilver, andin1888,undertherigimeof the presentPresident of theRepublicandthe Minister of Finance, Sefior Dublan, the Government ofMexico enteredintoa fresharrangement, the goldbonds, bearinginterest at 6percent., being issued, andsincethat datereligiously receivingthefull amount of interest, until theirconversion in1899.Under the short-lived and disastrous Government of theEmperorMaximilianwere issued what were known as the"Petit Bleu "bonds(printeduponbluepaper) of a face valueof 500francseach. These wereneverrecognisedby the RepublicanGovernment, andconsequently theywerenever met.Asalreadystated, inJune 1899 theforeign golddebt wasconverted. Withtheassistance of the great banking-houseofJ.S. Morgan(London),J.P.Morgan(New York), the DresdenBank, the Deutsche Bank, and S. Bleichroder (Berlin), thewholeForeignDebt of theRepublicof Mexicowasconvertednamely, the6 percent,loansof 1888, 1890 and 1893, andthe 6per cent,loan for theTehuantepecRailway into aConsolidated 5percent. External GoldLoan,repayable withina period of 45yearsat par, by meansof semi-annualdrawings,whichmay be increased after 1909 (the first having takenplaceinJune 1900), orbypurchaseintheopenmarket, ifthey fall belowpar.Theprincipaland interestuponthisLoan arepayablesimultaneously in London, Berlin, NewYorkandAmsterdam.TheNational Debt of Mexico to-day may be roughlyplacedat some $375,000,000(say 37,500,000), of which$144,000,000(14,400,000)represents moneyswhichhave been advanced toRailwayenterprisesorexpended uponactualconstruction ;Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdTHEPUBLICDEBT 149$26,000,000(2,600,000), the cost of the Veracruz PortWorks ;$21,000,000(2,100,000), thecost of SalinaCruz andCoatzacoalcos Port and Harbour Works;$4,000,000(400,000)upon Manzanillo Port Works ;$3,000,000(300,000) at Tampico; and about $10,000,000(1,000,000)upon variouswaterand drainage works. Thevast works inconnection with theValley of Mexicodrainagecost$16,000,000(1,600,000) ; thesewerageand waterworks in the same district another$6,000,000(600,000);publicbuildingsandimprovementsinthe Federal District,$8,000,000(800,000) ; or, say,approximately$240,000,000(24,000,000) out of the whole amountof $375,000,000(37,500,000) has beenexpendedupon necessary or reproductivework. Nofrittering awayof thepublicmoneyuponuseless"avenidas,"as has been done by theBrazilian Federal Government at Rio de Janeiro, oruponmagnificentbut useless residences fortheMinisters andtheirjuniorofficials, as has been done by theBuenos Aires StateGovernment at LaPlata,Argentina.Agoodlypartof theNational Debt still remains incashon hand, whilea parthasalso beenexpendedfromtime to time upon theacquisitionofshares in the National, Interoceanic and CentralRailways.ThefirstsurplusinMexico'sfinancial historyoccurred inthefiscal year of 1895-1896, when itwasproudlyannounced thatthe revenue of the Federal Government had exceeded theexpenditureby$5,451,347(about545,134).Year by yearthebudgetarystatement hasimproved, andthis inspiteof thedismalforebodingswhich were freelyindulgedinwhen thefarseeingFinance Minister, on May 12th, 1896, abolished bypublicdecree the alcabalestotakeeffect inthemonthof July1897, followeda fewyearsafterwards by theabolition of theFreeZone institution, thuseliminating the last vestigeof thevicioussystemof economicinequalities.Thepublicdebt isrepresentedbybonds of different ratesof interest and payable either ingoldor insilver,accordingto designation.Theportionpayable in foreigngold is representedbythe value which it wouldattainwere theforeignrateofexchangeat par, the supposedvalue of $5.00per poundsterling beingthe mostapproximatebasis for calculation.Thefloatingdebt, whichisa non-interest-bearing debt asopposedto the Mexican debt(silver)and theForeignDebtGenerated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd150 MEXICOOFTHEXXth CENTURY(gold), whichare interest-bearing, is madeup of credits whichthe partiesinterested have failedtocollect or haveconvertedintoother bonds accordingto thedifferent Lawswhichgovernthepublicdebt. It is saidthattheTreasuryDepartmenthasnotto-day a single short-time bondamong its floatingdebt,either interest-bearing or not, issued since July1st, 1894, inpayment of any claim. In regardto the uncollectedor unclaimed amountsof interest either on the goldor silver debts,therespectiveamounts aredepositedin thebanking-housesinchargeof such debts, those of thesilverdebt being placedin theNational Bankand those of thegoldbonds of 1888,1890 and 1893beingdepositedwiththe house of S.Bleich-roder, of Berlin.It maybepointedout that thewhole of the securities ofthe PublicDebt of Mexico havespecial provisionmade fortheir amortisation. The whole of theForeignDebt abovereferredto, as well as the Interior 5percent. RedeemableDebt, are now being paidoff graduallyby means of the fixedannual sumcomprisingbothinterest andsinkingfund. Theamount of the3 percent. Interior Cons. Debt isbeingreducedyearby year, owingto thefact thatvacant lands purchasedfrom the Government arepaidfor inthe bonds of the saidDebt, andin additionduringthe financialyear1904-1905 thesumof$126,350in 3per cent,bonds was amortised, suchbondsbeingplacedondepositfor thepurposesofexchangefor claimspreviousto June 1896, but whichlapsedonJune30th, 1905, thecreditorshavingfailedto makeapplicationfor the same within the statutorylimits of time.Apartfromthe amounts thus redeemed, amortisations of the Debtoccasionallyensueby reason ofspecialoccurrences, such as,for instance, took placein1904-1905, when the last loanwasraised by theMexicanGovernment for$40,000,000gold, andwhen a portionof the proceedswas devoted tothe conversionandredemptionof certain classes of securities, such asTreasury Bills, etc. Thisclass of amortisationisexceptional,however. Duringthepastfinancial year,apartfromtherefundment ofTreasury bonds issued in 1903 and 1904, aclearing-offhastaken placeof Veracruz and PacificRailwaysubvention bonds, Mexican SouthernRailway subventionbonds andspecialcertificates of theTehuantepecNationalRailway andPort Works.Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdAPhoto by C. a. ll'ailc.MexicoCityTheBullring.Fuentes, the famousMatador orEspadk. see p.245.Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdGenerated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdGOVERNMENT ISSUES 151Toarriveatthetrueamount of amortisation effected, it isnecessary to deduct fromthegrossamount of$55,654,499,representing all classes of securitiescancelled, theamounts repaid out of the$40,000,0004 per cent,loanof 1904-5, thus:$Total amortisation of Public Debt55,654,499Less value of securitiespaidoff fromproceedsof1904-5 Loan 52,091,651Leaving a balance representingnormal amortisationfor the year1904-1905 $3,562,848Thefollowinglist which I havepreparedshows theprecisenumber of Mexican Government and State GovernmentIssues up to date,togetherwith the amounts, the interestpayable and thedatesfixedforredemption:Nameof Loan.Interest.Per Cent.Payable.Total Issue(Dollars).Redeemable.MexicanGov. Ex.Gold5 Quarterly110,000,000July1st, 1945Mexican Gov. GoldKrinn o4 Half-yearly40,000,000 Annual Drawings_1_>U11 '_.!.>Mexican Gov. Red. 5100,000,000Half-yearly DrawIntern. SilveringsMexicanGov. Cons. 3 , >45,000,000NoprovisionforIntern. SilverGenerated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdCHAPTERXVIIBankingMonopolies discouraged Governmentsupervision Growth ofbankingState banks and chartersAgriculturalbanksOpportunities availableIncreases ofcapital Bankof JaliscoDescuentoEspanol Chinese BankFrench capitalin Mexico American BankBancoInternacional 6 HypotecarioBancoAgricola HipotecarioClearing-house Continental shareholdersCombinedstatementofchartered banksto February1907.I have onpreviousoccasions referred to the fact that theMexicanGovernment issternlyopposedto monopoliesof anykind or inanyguise.They have been tried over and overagain, both with and withoutGovernment aid;butalwayswiththe selfsame resultfailure. The nearestapproachto anymonopoly inMexicois the MexicanLightandPower Co., ahugeCanadianenterpriseof which themanagementis attimes deemedsomewhat autocratic; but the servicesrenderedto thepublicbeing unmistakeablygood, littleis thoughtaboutany lackofcompetition.An instance of the Government'sgood intentions in breakingdown and keepingdown any growthofmonopoliesis foundin the banking laws. Here we have measures expresslydesignedto afford thewholecountryabsolutelyfreebankingoutside of the Federal District, in which the mostimportantchartered banks of theRepublicare located. The samepolicy whichdirects the pitting of one railwayagainst anotherisfavoured inestablishingone bank againstanother, rivalryandhonest competitionbeingfreely encouraged; and thusthegrowthof industries is fostered. New banks arecontinuallybeing established, but it iscertainthat no others will receiveGovernment charters, the Finance Minister, M. Limantour,having arrived at the conclusion that there are now sufficient ofthesethirty-fourinnumberforallpracticalpurposes, as,indeed, isthecase.152Generated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdBANKING LAWS153The BankingLaws deal with three kinds of bankstheBanks of Issue, the Banks ofMortgagesand the Banks ofAgriculture.The underlyingprinciplesof the laws are twofold, Governmentsupervisionand banking freedom bothinregardtoorganisationandmanagement.While at firstglancethetwo conditions mayappeartobe incompatible, intruth they are perfectly harmonious. Banks of issue anddiscount have been established in all the Statesand Territoriesof theRepublic, with theexceptionof the Federal District,where the concessions ofexisting banks havebeenandwill berespected.The banks of issue and discount are the onlyones authorised toissue billspayableatsightor to bearer.The rules andregulationscovering these issues are asfollows:(a)The issue of notes must never bein excess of threetimes the capitalstockactuallypaidup, nor may itplusthesumtotal ofdeposits payableon demand or at more thanthreedays'callbemore thantwicetheholdingsof thebankinspecieand ingoldandsilver bullion.(b)Loan and discount transactions must not be entereduponfor alonger periodthan six months, nor with fewerthantwo responsiblesignatures, unless a collateral securitybeprovided.(c)No transactionsecuredby mortgagecanbeenteredupon.Thesesimplebutcomplete provisionseliminate toa greatextent thedangerswhich usually attendoperationson thepartof banksof issue, whileaffordingtheseinstitutionseveryopportunity tocarryout the usual demands of commerce andindustry.With moreparticularreference to theprinciplepreventing thebanks fromtying-uptheircapitalfor lengthyperiods, it maybeobserved thatwhenever banks of issuehavebecomeinsolvent, whether incountries where thesystemofbanking monopolyprevailsor where the institutions maybefounded without restriction as to number or capital, suchcatastropheshave almost invariably been occasionedby thefact that Governmentsor individuals have owed themmoneyfor longperiods, eitherby virtueof theoriginaltermsof theloanor because theborrowerswereunableto paywithin thestipulatedtime. Asin the caseof some of the South andCentral A*merican State Governmentsand inoneparticularGenerated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pd154MEXICOOFTHEXXth CENTURYcase at least, withinmyknowledge, of a Federal Governmentwhenthey are unable torepay the amount of theirborrowings, theGovernments do not hesitate to release thelending banks from theirobligationsto redeem their noteissues ondemand, whichtherefore becomelegal tender. TheMexican BankingLaws havesoughtto avoid thesepitfallsand subterfuges, and insistuponthecarrying-onof honestfinance. Theyhave laiddown sensible andstrict regulationsbaseduponscientificprinciplestoregulatethe circulation,andhavetakeneveryprecautionincumbentupon themtoseethat theredemptionof notesproceedsunhindered. Inorderto prevent the undue multiplicationof banksof issue, thelawsgrant exemptionfromtaxation only to those institutionswhich were first established ineach of the States and theFederal Territories.A little more than a dozenyears agothe number ofbankinginstitutions didnotexceed three, theoldest of whichhadbeenestablished in1864. Eventhiswas practicallybuta branchof a Britishbanking firmhavingcorrespondentsinthe various Latin-American countries. For nearly twentyyearsthis bank had the field to itself, but in 1882 theNational Bank (Banco Nacional deMexico)was founded.Then, up to the end of 1889, the number of banks waslimited to six. In1893 there were three Banks inMexicoCityandeightotherB in various portionsof theRepublic, distributedamong thetwenty-sevenStates andthree Territoriesclearlyinsufficient. The Mexicans, however, were a longtime being educated to the use of a bank, and even thewealthiest among thempreferredtohoardtheirsavingsandcapitalinstrong-roomsof their own to entrusting themtostrange keeping.It was equally difficult topopularisecheques.Vales,or bills, were in circulationamong merchantsand their customers, but silver was theprincipalmediumemployed, for this the people had understood all their lives, andloved thehandling of theheavy, clumsy, but easilycountablepesos.Banks now exist ineverysingleStateofthe Republic,and inmanyof themseveralcompetitiveinstitutions are tobefound.Thereis nodoubt that this condition ofthingshas comeaboutmainly on account of theenterpriseof Americans, inGenerated on 2015-06-24 21:23 GMT / http://hdl.handle.net/2027/yale.39002024825797Public Domain / http://www.hathitrust.org/access_use#pdAGRICULTURALBANKS 155whose hands many of themost successful banks areto-day.It is they who haveintroducedmodern methods of accounting,andadoptedan entirelynewsystemof commercial trading.There are atpresentfiveCharteredBanks in theCity ofMexico, two of whicharebanksof issue, and over sixtyStatebanks for the rest of theRepublic, including branches of theprincipalCityinstitutions, such as the Banco Nacional andthe Bancode Londres y Mexico. Of thetwenty-sevenStates,twenty-threehavebanks located withintheir boundaries, andthese have branches in severaladjoiningStates. Whereas probably$500,000 representedtheamount of thedepositsa decadeago,to-daythe combineddepositsof the banks, nativeandforeign, exceed$55,000,000(Mex.), of whichsome $25,000,000,ormore, maybe said tobe American. Theonly Britishbankis the International andMortgageBank of Mexico (BancoInternacionaly Hipotecario),althoughat onetimetheBankof London and Mexico (Banco de Londres yMexico)wasunder British control, but has sincepassedinto the handsof someverycapableFrenchowners. The total circulationof all thebanks may beputat$180,000,000(Mex.)