# Mexico's dilemma/Chapter 3

CHAPTER III
Rebels and revolutions
NEEDLE your way through the crowded streets of Mexico City or motor to the suburbs and you will rub sleeves, exchange glances with, or pass along the road, rebels, ex-rebels and honest soldiers. Saunter or drive about the capital and you will see, face to face, the individuals who present the biggest problem of reconstruction in Mexico. You will encounter a sufficient number of the army of 114,000 to convince you that even if the payrolls are padded there are large groups of men actually drawing salaries.
In mid-August, 1917, a cousin of General Zapata, the bandit chief of the state of Morelos where the sugar plantations are, surrendered with "two thousand men" to the national government. Those who wished to join the army of the Republic were permitted to do so. The week before these men were bandits. Within seven days they became soldiers.
Not all of the peons who join the national army are patriotic, a fact which causes considerable trouble in the country districts. Sometimes, after ​the ex-rebels have been with the government forces long enough to get new rifles and several rounds of ammunition, they trek to the mountains to be welcomed by their old chief with a handshake and an enthusiastic hug, the customary cordial greeting between Mexican friends.
One day while I was in Mexico City several officials of the British Embassy were motoring through one of the suburbs. Approaching a garrison they saw a soldier, sitting on the curb, smoking a cigarette. As they passed he shouted: "Stop," and other words which were so mumbled they could not be understood.
The automobile, which had passed the man, backed to within a few feet of him and the chauffeur asked what was wanted. Instead of answering, the soldier, who was evidently intoxicated, continued to puff, and gazed at the foreigners. After waiting several minutes and receiving no explanation the automobile advanced. Immediately the soldier jumped up, recovered his balance, and started towards the barracks for his rifle. The Englishmen huddled into their seats, the chauffeur added gasoline, and before the rebel could fire the party was several hundred yards away.
There being no other route to the city the foreigners had to return the same way three hours later. Reaching the garrison they saw both sides of the highway lined by a company of soldiers. A captain, standing in the middle of the road, held ​up his hand. The car stopped and the soldiers stood at attention.
"Is this the automobile which was ordered to stop a few hours ago while passing here?" the officer asked.
The British officials expected a summary execution, but, having experienced excitement before, decided to preserve their calm.
"Yes, Señor Captain," replied an Englishman, "we were ordered to stop and we did. . . ."
His explanation was interrupted.
"All right, Senor," politely answered the officer. "I wish to inform you that discipline has been maintained. You may go, gentlemen."
Soldiers still at attention, the automobile departed, but the foreigners could not understand whether they or the soldier had been disciplined. Inquiries the next day disclosed that the soldier had been shot for giving an order without orders from an officer. Discipline was maintained by execution.
It is not always the soldiers, however, who are to be blamed. I met the manager of a large American corporation who, for two years, had been paying tribute to six generals. Their price for "protecting" his property had been between three thousand and seven thousand pesos, at intervals determined by officers. Automobiles were then being shipped into Mexico City by the dozens and the generals asked this manager for six autos. This manager telegraphed to Detroit for the cars ​and expected to be able to pay the graft within a very short time. A new use, indeed, for motorcars, but the manager and the company were satisfied because the cars cost, delivered in Mexico City, about one-fourth of the amount of the "protection" formerly rendered.
Friends of President Carranza will candidly admit that the First Chief, when he was fighting for recognition and authority, had to accept the services of many undesirable men, both officers and soldiers. Mr. Carranza and his intimate advisors know that there are rebels and grafters in office to-day. They realise that these men cannot be ousted immediately and without cause. If the present government were to expell from the army, or imprison every officer and soldier who to-day is not following orders, the government would be overthrown even if the penitentiaries could hold all the guilty. For this reason Mr. Carranza is working slowly and quietly to eliminate these men from his councils and from responsible positions. Whether he will succeed is a puzzle the key to which has not been found. There are Mexicans and foreigners who will tell you that the Carranza Government is as certain to fall as the buildings in Mexico City are certain to sink; and this latter fact no one doubts, as even the National Theatre, the so-called "White Elephant" because its marble walls are uncompleted, is gradually sinking in the mire upon which the capital is built. Others will inform you that this government is gaining ​strength every day and that if it receives financial assistance nothing will be able to wreck it. But all, pessimists and optimists alike, agree that the greatest problems facing the government to-day, excepting the financial, are the problem of reconstruction and the existence of the rebels.
Finance is, of course, the greatest problem, and it is the more puzzling because the problems of financing a nation like Mexico are not similar to the problems of financing more civilised and enlightened countries. Selfishness and ignorance play an even greater rôle in Mexico than pork-barrel politics play in Washington!
One day I recall when the Chamber of Deputies was in session a member called the attention of the presiding officer to the lack of a quorum. Those who have seen how well the U.S. House of Representatives is attended during most of the debates will understand such a situation.
The President of the Deputies summoned the Sergeant-at-Arms and ordered him to send the members to their seats. Meanwhile the proceedings waited the arrival of the deputies. After a long interval the Sergeant returned, reporting that he was unable to procure a quorum.
"Where are the members?" inquired the President.
"They are at the Cashier's window awaiting their pay," answered the officer.
"Summon the cashier," ordered the President, and when the latter reached the rostrum he was ​THIS WAS AT ONE TIME A BEAUTIFUL RESIDENCE. THIS IS THE REVOLUTIONARY REMAINS THE FAMOUS "SADDLE MOUNTAIN" OF MONTEREY ​told to close the pay window and not to open it again during sessions of the Deputies.
And a quorum was soon present.
That incident illustrates one aspect of the money problem in Mexico. An incident illustrating another aspect came to my attention during a conference with a Canadian electrical engineer. The company he represented desired to erect poles to carry their feed wires from a plant near the capital to another city. The line, as mapped, was to cross a large plantation owned by Indians. The concession was worth between five thousand and eight thousand pesos to the company. The engineer went to see the Indian. He offered him four thousand pesos.
"No, no, Señor," protested the Indian.
"Why not?" asked the foreigner.
"No. No four thousand, Señor," said the owner.
"Well, how much then? What do you want?" questioned the Canadian.
"If Señor will fill my sombrero and my son's sombrero with pesos, silver pesos, I will give you the concession.
"But," protested the engineer, "four thousand pesos are much more than two hats will hold."
"No, no, Señor, no. You must fill my sombrero and my son's sombrero with pesos."
And the foreigner returned the next day with enough pesos to fill the two hats so that the coins rolled over the sides. The Indian was delighted. ​Two sombreros filled with pesos meant something to him. Four thousand pesos, that sum was a myth.
It is not the ignorance of the peons or the Indians, however, which makes the financial situation in Mexico difficult to solve. It is the ignorance of many officials and leaders regarding international finance. So many Mexicans cannot understand the relationship which should exist between nations, although they have a clear idea of money matters between individuals.
Discussing the problems of finance and reconstruction with Mexican officials one is impressed by the fact that so few of these can see the viewpoint of the outside business man, the foreign capitalist. Most Mexicans will say that because of the rich natural resources of the country any foreigner ought to be willing to loan money to the government. The resources are here, many of them still untouched, they will declare, and if foreign capital invests in Mexico, it should be prepared to share prosperity or revolution with Mexico.
The pacification of Mexico to-day presents in many respects the same problem with which the United States Government had to deal after the Civil War. The Mexican bandits are, so to say, the Ku-Klux Klan of this country. Generals Villa and Zapata may be likened to the James brothers. The difference is that in the United States the bandits attacked American or national ​property. In Mexico bandits destroy foreign property. The most popular cry of the revolutionists has been "Down with the foreigners who exploited us." Thus our neighbour south of the Rio Grande faces some of our problems of the late Sixties with the added difficulty that whenever the highwaymen operate there it causes an international as well as an internal crisis.
The operations of Villa in the North have agitated not only foreign business interests, but the American people. What Zapata has done disturbs the Mexicans the most, although he, too, is opposed to foreigners.
The Carranza Government has sent several military expeditions into Morelos in an attempt to crush Zapata. As the soldiers marched through the state in search of Zapata's army they met only the most peaceful citizens. No one knew where Zapata was! No one had seen his army! Zapata was clever enough not to fight. He ordered all his soldiers to bury their arms and plough their fields. When the Carranza forces left, the army appeared, and it was, and still is, unsafe for any one to go through the state. The government has attempted to stop shipments of ammunition to Zapata, but this has not been successful, as officers and soldiers in the government's army have sold munitions to Zapata. Now the government, suspicious of certain officers and men, is laying a trap for them, and if they are caught they, too, will be "disciplined." ​Another demand of the revolutionists has been for "land." Even the present government sympathises with this demand, and the first endeavours of President Carranza to fulfil promises made during his campaign are being made in the little belligerent state of Morelos. It is, in point of size, the smallest state in the Union. When the Spaniards settled in this country they gave to each town and city what was called the "ejidos." This was the granting of one league of land around the original town or city limits to the inhabitants to be worked by the community. During the development of Mexico this league of land has been given to outsiders or to farmers having property nearby. Many towns have lost their "ejidos." This is particularly true in Morelos, and the "good" citizens of this fighting state want back this land. So the present government is attempting a new means of pacification. It is returning this property to the community. Simultaneously the government is announcing that all political rivals, who swear allegiance to the government, will be pardoned. While this movement is having all the success the government anticipated, its progress can only be very gradual because Zapata, like the Germans, is a propagandist. He is telling his followers that if they surrender to Carranza they will be executed. He is warning the farmers that if they desert him they will be downtrodden by the Americans. And the people of Morelos are suspicious of "outsiders." ​This anti-American part of the propaganda is very popular. Even the present government, according to many Mexicans, is too friendly to the United States. Most of the newspapers of Mexico City, even those that are pro-Ally in their war sympathies, have a grudge against the United States. El Democrata, the chief organ of the Germans, prints more articles of hate about the United States than any other newspaper. Some American journals are most effectively aiding the Germans in Mexico by demanding armed intervention.
Redencion, another daily, seizes every opportunity to stir the slumbering Mexican against the "Yankees." On August 9th, 1917, it printed on the first page a three column cartoon picturing a nude woman, tied to a stake, representing the revolution. The fire, kindled at her feet, represented the "enemy" of the revolution, and the fresh logs which had been placed on the flames were labelled: "Yankees," "United States," "Friends of the Yankees," etc. Government officials who are friendly to the United States, such as Señor Don Luis Cabrera, unofficially the Acting Secretary of the Treasury, and Señor Don Manuel Amaya, official introductor of Ambassadors, are also "enemies."
El Democrata is one of the morning newspapers which does not receive the Associated Press despatches. Its news, telegrams from the United States and Europe, are sent to Mexico City from ​New York by the "Spanish-American News Agency." These telegrams, which the United States censor was permitting to pass while I was in Mexico, were not only intensely pro-German, but exceedingly anti-American.
Before the United States declared war the German Embassy in Washington sent a daily telegram to the German Minister in Mexico City, Herr von Eckhart. This despatch contained the wireless news circulated by the German Admiralty and Foreign Office. When the United States declared war the service ceased, and an organisation known as the "Spanish-American News Agency," with headquarters in New York, began to serve El Democrata and several newspapers in South America.
Judging from the despatches I saw printed, this concern succeeded the news service of the German government, operating as a Mexican company. The "Spanish-American News Agency" was, and doubtless still is, doing more to cause trouble between the United States and Mexico than any other public agency in the Mexican Republic.
Another publicity prostitute is La Defensa, an afternoon newspaper also controlled by German interests. It announces daily some great catastrophe to the United States or the Allies. While I was in the capital it proclaimed an American revolution. It announced the sinking of several American battleships and transports. It forecasted American intervention and printed the ​most astounding "news" about events in Washington. Some of this news had a basis in fact; some had none at all. La Defensa receives most of its telegrams from Nuevo Laredo, Mexico. A Mexican who lives in Laredo, Texas, crosses the international bridge with copies of American newspapers daily and from the Mexican telegraph office he telegraphs his untruthful accounts to Mexico City. He, too, is a trouble breeder, who might, with advantage, be watched by the Department of Justice.
Although several reports have been made to the United States Government about the activities of these newspapers, no steps have been taken to stop such practices. German propaganda is a sort of international dachshund which escapes the eyes of the dog catchers by following neutral citizens as soon as the Germans go into hiding.
The general opinion in Mexico City I found to be that, as a group, the Germans are working very quietly. Many of these German citizens are related to Americans and they correspond freely with residents of the United States. They receive all of the American newspapers and magazines and are able to keep almost as well informed about events in the United States as the German Embassy in Washington was before diplomatic relations were broken. While it is impossible to-day to send information to Berlin from Mexico by wireless, the mail route via Cuba is still open to Spain, and from that country the ​German representatives have the use of an uncensored wireless.
When in the summer of 1917 there were reports that German agents in Mexico were plotting against the United States President, Carranza summoned the German Minister to inform him that the government would not permit attacks on a friendly government to be hatched on Mexican soil. The Germans to-day are working quietly with but one object. They believe that after the war, when the real fight for raw materials and commercial supremacy begins, the greatest possibilities for Germany will be in Mexico. This country has many of the raw materials which Germany will need, and the Germans figure that it will be easier for German merchants to buy in Mexico, if that country remains neutral, than in any of the lands which were belligerents. For this reason, alone, it is highly in the interests of the Kaiser's Government that Mexico remain friendly to Berlin. It is generally believed in Mexico that one of the factors determining President Wilson's policy toward that country was the attitude of Latin-America. The Carranza Government was quick to recognise this, and now everything possible is being done to fuse the bonds between Mexico and South and Central America. Diplomats from the nations of South and Central America who arrived in Mexico during my stay were accorded the most enthusiastic receptions. At that time the Republic of Argentine sent a new ​envoy. When he arrived at Vera Cruz a delegation of Mexican Ministers and officers were sent to act as his escort to the capital. In the big palace at the port the incoming diplomat was tendered a banquet at which several speeches were made about the value of Latin-American union. To these cordial addresses the Argentinian replied that his country, too, favoured such a union.
When the speaking had ended, a young general (there are many generals under thirty in Mexico) arose, and in a long, hesitating, after-dinner speech, declared that he believed in the purposes of such a union but considered the name an unfortunate one.
"I propose," said he, "that we call this union a Latin-Mexican union and leave the America out."
This general was one of the group of anti-American army officers who are pro-German and who carry around chips as shoulder straps.
One might imagine that a government with so many internal problems to solve might be spared international perplexities. Not so in Mexico. Mexico's internal strife is the chief cause of her international disputes. There are some radical Mexicans who advocate the lynching of all foreigners. Others desire the confiscation of all foreign property. This group of radicals was influential enough at the Querétaro convention held not long ago to insert confiscatory clauses in the constitution. Some Mexicans will state ​that these provisions of the constitution will be enforced some day, while others will remark:
"Oh, but what is a constitution among friends?"
Nevertheless the chief obstacle to reconstruction in Mexico to-day is the lack of confidence of foreign investors in the stability and honesty of the present government. As long as there are rebels and grafting generals about the country, and so long as the present government holds property confiscated when the Constitutionalists were a de facto government, foreigners will be sceptical of Mexico. President Carranza and his most trusted advisors know this but they are still, to a certain degree, hampered by the radicals, who know nothing and care less about international obligations. Where it is possible the present government is returning confiscated property, even that belonging to the old Cientificos, the so-called "scientific grafters" of the Diaz régime.
When the State Department sent Mr. George A. Chamberlain to Mexico City to reopen the United States Consulate-General, he selected a house on Avenida Juarez which was built by Señor Limantour, Secretary of the Treasury under President Diaz. The house at the time was occupied by General Urquizo under confiscation orders of the government. Mr. Chamberlain told the owners he wanted to rent the place on behalf of the United States Government. General Urquizo ​was ordered to evacuate. When he turned the residence over to representatives of the Limantour estate, who were to rent it to the Consul General, the palatial home itself was in as good condition as it was when built, although all the expensive furnishings had disappeared.
While I was at the capital a forestry expert who had been sent to Europe years ago by Diaz to study the scientific care and planting of trees and shrubs returned to Mexico City. President Carranza sent for him and asked him to head the Forestry Department of the present government.
These are instances which indicate a new policy on behalf of the Carranza Government. Government officials, including members of the Chamber of Deputies, assured me that the government intended to return all confiscated property as soon as this became possible.
The Carranza Government is to-day operating the tramways of Mexico City and all the national railroads, even the English road from the capital to Vera Cruz.
Several years ago there were many street car systems in Mexico City, all in miserable condition. Belgian, English and French investors saw the possibility of consolidating these lines and the Mexican Tramways Company was organised. The same investors to-day own the large power plant located about one hundred miles from the capital at Necaxa. In peace time this station provided all the electric power and light for ​Mexico City, Pachuca, El Oro and other cities. The Light and Power Company and the Tramways Company are operated as distinct corporations.
Sometime in 1914 the Carranza forces "intervened" and took over the tramways without paying the investors interest or compensation. For over two years the power company furnished the electricity to run the cars free of charge. This was confiscated property, pure and simple.
President Carranza saw that some day the tramways would have to be returned to the owners. He was informed that if they were returned in their present condition the company might claim millions of dollars worth of damages. So the President ousted his former grafting "interventor" and appointed a young engineer, Señor Francisco Cravioto, as director on behalf of the government, responsible to Mr. Carranza alone. Since Señor Cravioto has been in office he has paid instalments on the electric power bills amounting, up to midsummer 1917, to $40,000 a month, and he has turned over a few hundred thousand pesos to pay interest on the foreign bonds out of many millions owing. Foreigners in Mexico City to-day look forward to the time when the tramways will be returned to the owners and the old debts adjusted.
This is pointed out by the most optimistic foreigners as an example of what treatment foreign business interests may expect from the Carranza ​Government where the business men show a willingness to co-operate.
The government is in need of financial assistance. All problems of reconstruction virtually rest upon the possibilities of this government receiving a loan. Granted a loan of $150,000,000 the most reliable foreigners in the capital believe that Mexico will experience more prosperity than it did under the Diaz régime. To-day the government is minting gold and silver as fast as possible and all the banks in the Republic are "granting" so-called "forced loans" of gold and silver which they have on deposit.
These, then, are some of the problems of reconstruction in Mexico. The nation is passing through a trying, tempting transition period. Government officials have had practically no experience directing big business enterprises or in administrating government affairs. Every element which has in the past contributed to failure is present in Mexico to-day and very few of the requirements of success are to be found. There are hatred, jealousy, suspicion, graft, intrigue and the baneful influence of "relatives" who have been appointed to office. Patriotism, sincerity, good-will, faith, honesty and confidence are lacking. But despite all these national elements the Carranza party is the strongest one in Mexico, and there are, I repeat, on the horizon no other parties or leaders who could summon the support which is being given to President Carranza. ​As I have just said, the government has been seeking the friendship of the nations of Latin and Central America. But the "unkindest cut of all" came from one of these nations.
In the United States it is understood that the revolution was started against Diaz, the "Dictator," and many people in Mexico will tell you that the greatest benefit of the revolution was the overthrow of the "Don Porfirio." But there are, perhaps, some places where this is not understood, or if it is, then Uruguay has a delightful sense of humour.
One of the things the present government has done has been to change the names of all streets in the capital named after saints. Avenue San Francisco, the famous business thoroughfare, is called "Francisco I. Madero." To carry out the government policy of winning the Latin countries "Calle San Agustin" was changed to "Calle Uruguay" and the Uruguay Government was officially notified that a street in the capital had been named after that country.
In the course of diplomatic time, which is measured neither in hours or days except when ultimatums are sent, Uruguay replied that it was highly honoured by the act of the Mexican Government and had decided to change the name of one of the streets in their capital to the "Avenue of Porfirio Diaz" in honour to the great Republic of Mexico!
Although this method of honouring foreign ​countries is frequently exhibited in the telephone books, I was not able to find any streets named for the United States. I passed, on several occasions however, a bronze statue of George Washington, two blocks from the American Embassy on the Plaza de Dinamarca, where the First President of the United States stands with his right hand extended and his left holding his three-cornered hat. But the bronze table which tells who this hero is has been removed and George Washington to a passer-by might be any one of a number of local or international heroes.