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From Barbarous Mexico by John Kenneth Turner (Chicago: Charles H. Kerr & Company, 1910), pp. 120 137, passim.
The slavery and peonage of Mexico, the poverty and illiteracy, the general prostration of the people, are due, in my humble judgment, to the financial and political organization that at present rules that country--in a word, to what I shall call the "system" of General Porfirio Diaz.
That these conditions can be traced in a measure to the history of Mexico during past generations, is true. I do not wish to be unfair to General Diaz in the least degree. The Spanish Dons made slaves and peons of the Mexican people. Yet never did they grind the people as they are ground today. In Spanish times the peon at least had his own little patch of ground, his own humble shelter; today he has nothing. Moreover, the Declaration of Independence, proclaimed just one hundred years ago, in 1810, proclaimed also the abolition of chattel slavery. Slavery was abolished, though not entirely. Succeeding Mexican governments of class and of church and of the individual held the people in bondage little less severe. But finally came a democratic movement which broke the back of the church, which overthrew the rule of caste, which adopted a form of government as modern as our own, which freed the slave in fact as well as in name, which gave the lands of the people back to the people, which wiped the slate clean of the blood of the past.
It was under Porfirio Diaz that slavery and peonage were reestablished in Mexico, and on a more merciless basis than they had existed even under the Spanish Dons. Therefore, I can see no injustice in charging at least a preponderance of the blame for these conditions upon the system of Diaz.
I say the "system of Diaz" rather than Diaz personally because, though he is the keystone of the arch, though he is the government of Mexico more completely than is any other individual the government of any large country on the planet, yet no one man can stand alone in his iniquity. Diaz is the central prop of the slavery, but there are other props without which the system could not continue upright for a single day. For example, there is the collection of commercial interests which profit by the Diaz system of slavery and autocracy, and which puts no insignificant part of its tremendous powers to holding the central prop upright in exchange for the special privileges that it receives. Not the least among these commercial interests are American, which, I blush to say, are quite as aggressive defenders of the Diaz citadel as any. Indeed . . . these American interests undoubtedly form the determining force of the continuation of Mexican slavery. Thus does Mexican slavery come home to us in the full sense of the term.
In order that the reader may understand the Diaz system and its responsibility in the degradation of the Mexican people, it will be well to go back and trace briefly the beginnings of that system. Mexico is spoken of throughout the world as a Republic. That is because it was once a Republic and still pretends to be one. Mexico has a constitution which has never been repealed, a constitution said to be modeled after our own, and one which is, indeed, like ours in the main. Like ours, it provides for a national congress, state legislatures and municipal aldermen to make the laws, federal, state and local judges to interpret them, and a president, governors and local executives to administer them. Like ours, it provides for manhood suffrage, freedom of the press and of speech, equality before the law, and the other guarantees of life, liberty and the pursuit of happiness which we ourselves enjoy, in a degree, as a matter of course.
Such was Mexico forty years ago. Forty years ago Mexico was at peace with the world. She had just overthrown, after a heroic war, the foreign prince, Maximilian, who had been seated as emperor by the armies of Napoleon Third of France. Her president, Benito Juarez, is today recognized in Mexico and out of Mexico as one of the most able as well as unselfish patriots of Mexican history. Never since Cortez fired his ships there on the gulf coast had Mexico enjoyed such prospects of political freedom, industrial prosperity and general advancement.
But in spite of these facts, and the additional fact that he was deeply indebted to Juarez, all his military promotions having been received at the hands of the latter, General Porfirio Diaz stirred up a series of rebellions for the purpose of securing for himself the supreme power of the land. Diaz not only led one armed rebellion against a peaceable, constitutional and popularly approved government, but he led three of them. For nine years he plotted as a common rebel. The support that he received came chiefly from bandits, criminals and professional soldiers who were disgruntled at the antimilitarist policy which Juarez had inaugurated and which, if he could have carried it out a little farther, would have been effective in preventing military revolutions in the future-- and from the Catholic church.
In defiance of the will of the majority of the people of Mexico, General Diaz, thirty-four years ago, came to the head of government. In defiance of the will of the majority of the people he has remained there ever since--except for four years, from 1880 to 1884, when he turned the palace over to an intimate friend, Manuel Gonzalez, on the distinct understanding that at the end of the four years Gonzalez would turn it back to him again.
Since no man can rule an unwilling people without taking away the liberties of that people, it can be very easily understood what sort of regime General Diaz found it necessary to establish in order to make his power secure. By the use of the army and the police powers generally, he controlled elections, the press and public speech and made of popular government a farce. By distributing the public offices among his generals and granting them free rein to plunder at will, he assured himself of the continued use of the army. By making political combinations with men high in the esteem of the Catholic church and permitting it to be whispered about that the church was to regain some of its former powers, he gained the silent support of the priests and the Pope. By promising full payment of all foreign debts and launching at once upon a policy of distributing favors among citizens of other countries, he made his peace with the world at large.
Take, for example, Diaz's method of rewarding his military chiefs, the men who helped him overthrow the government of Lerdo. As quickly as possible after assuming the power, he installed his generals as governors of the various states and organized them and other influential figures in the nation into a national plunderbund. Thus he assured himself of the continued loyalty of the generals, on the one hand, and put them where he could most effectively use them for keeping down the people, on the other. One variety of rich plum which he handed out in those early days to his governors came in the form of charters giving his governors the right, as individuals, to organize companies and build railroads, each charter carrying with it a huge sum as a railroad subsidy.
The national government paid for the road and then the governor and his most influential friends owned it. Usually the railroads were ridiculous affairs, were of narrow-gauge and of the very cheapest materials, but the subsidy was very large, sufficient to build the road and probably equip it besides. During his first term of four years in office Diaz passed sixty-one railroad subsidy acts containing appropriations aggregating $40,000,000, and all but two or three of these acts were in favor of governors of states. In a number of cases not a mile of railroad was actually built, but the subsidies are supposed to have been paid, anyhow. In nearly every case the subsidy was the same, $12,880 per mile in Mexican silver, and in those days Mexican silver was nearly on a par with gold.
This huge sum was taken out of the national treasury and was supposedly paid to the governors, although Mexican politicians of the old times have assured me that it was divided, a part going out as actual subsidies and a part going directly into the hands of Diaz to be used in building up his machine in other quarters.
Certainly something more than mere loyalty, however invaluable it was, was required of the governors in exchange for such rich financial plums. It is a well authenticated fact that governors were required to pay a fixed sum annually for the privilege of exploiting to the limit the graft possibilities of their offices. For a long time Manuel Romero Rubio, father-in-law of Diaz, was the collector of these perquisites, the offices bringing in anywhere from $10,000 to $50,000 per year.
The largest single perquisite whereby Diaz enriched himself, the members of his immediate family, his friends, his governors, his financial ring and his foreign favorites, was found for a long time in the confiscation of the lands of the common people--a confiscation, in fact, which is going on to this day. Note that this land robbery was the first direct step in the path of the Mexican people back to their bondage as slaves and peons.
. . . The lands of the Yaquis of Sonora were taken from them and given to political favorites of the ruler. The lands of the Mayas of Yucatan, now enslaved by the henequen planters, were taken from them in almost the same manner. The final act in this confiscation was accomplished in the year 1904, when the national government set aside the last of their lands into a territory called Quintana Roo. This territory contains 43,000 square kilometers or 27,000 square miles. It is larger than the present state of Yucatan by 8,000 square kilometers, and moreover is the most promising land of the entire peninsula. Separated from the island of Cuba by a narrow strait, its soil and climate are strikingly similar to those of Cuba and experts have declared that there is no reason why Quintana Roo should not one day become as great a tobacco-growing country as Cuba. Further than that, its hillsides are thickly covered with the most valuable cabinet and dyewoods in the world. It is this magnificent country which, as the last chapter in the life of the Mayas as a nation, the Diaz government took and handed over to eight Mexican politicians.
In like manner have the Mayos of Sonora, the Papagos, the Tomosachics-- in fact, practically all the native peoples of Mexico--been reduced to peonage, if not to slavery. Small holders of every tribe and nation have gradually been expropriated until today their number is almost down to zero. Their lands are in the hands of the governmental machine, or persons to whom the members of the machine have sold for profit--or in the hands of foreigners.
This is why the typical Mexican farm is the million-acre farm, why it has been so easy for such Americans as William Randolph Hearst, Harrison Gray Otis, E. H. Harriman, the Rockefellers, the Guggenheims and numerous others each to have obtained possession of millions of Mexican acres. This is why Secretary of Fomento Molina holds more than 15,000,000 acres of the soil of Mexico, why ex-Governor Terrazas, of Chihuahua, owns 15,000,000 acres of the soil of that state, why Finance Minister Limantour, Mrs. Porfirio Diaz, Vice-President Corral, Governor Pimentel, of Chiapas, Governor Landa y Escandon of the Federal District, Governor Pablo Escandon of Morelos, Governor Ahumada of Jalisco, Governor Cosio of Queretaro, Governor Mercado of Michoacan, Governor Canedo of Sinaloa, Governor Cahuantzi of Tlaxcala, and many other members of the Diaz machine are not only millionaires, but they are millionaires in Mexican real estate.
Chief among the methods used in getting the lands away from the people in general was through a land registration law which Diaz fathered. This law permitted any person to go out and claim any lands to which the possessor could not prove a recorded title. Since up to the time the law was enacted it was not the custom to record titles, this meant all the lands of Mexico. When a man possessed a home which his father had possessed before him, and which his grandfather had possessed, which his great-grandfather had possessed, and which had been in the family as far back as history knew; then he considered that he owned that home, all of his neighbors considered that he owned it, and all governments up to that of Diaz recognized his right to that home.
Supposing that a strict registration law became necessary in the course of evolution, had this law been enacted for the purpose of protecting the land owners instead of plundering them the government would, naturally, have sent agents through the country to apprise the people of the new law and to help them register their property and keep their homes. But this was not done and the conclusion is inevitable that the law was passed for the purpose of plundering.
At all events, the result of the law was a plundering. No sooner had it been passed than the aforesaid members of the governmental machine, headed by the father-in-law of Diaz, and Diaz himself, formed land companies and sent out agents, not to help the people keep their lands, but to select the most desirable lands in the country, register them, and evict the owners. This they did on a most tremendous scale. Thus hundreds of thousands of small farmers lost their property. Thus small farmers are still losing their property.
Another favorite means of confiscating the homes of small owners is found in the juggling of state taxes. State taxes in Mexico are fearfully and wonderfully made. Especially in the less populous districts owners are taxed inversely as they stand in favor with the personality who represents the government in their particular district. No court, board or other responsible body sits to review unjust assessments. The jefe politico may charge one farmer five times as much per acre as he charges the farmer across the fence, and yet Farmer No. 1 has no redress unless he is rich and powerful. He must pay, and if he cannot, the farm is a little later listed among the properties of the jefe politico, or one of the members of his family, or among the properties of the governor of the state or one of the members of his family. But if he is rich and powerful he is often not taxed at all. American promoters in Mexico escape taxation so nearly invariably that the impression has got abroad in this country that land pays no taxes in Mexico. Even Frederick Palmer made a statement to this effect in his recent writings about that country.
Of course such bandit methods as were employed and are still employed were certain to meet with resistance, and so we find numerous instances of regiments of soldiers being called out to enforce collection of taxes or the eviction of time-honored land-holders.
Hardly a month passes today without there being one or more reports in Mexican papers of disturbances, the result of confiscation of homes, either through the denunciation method or the excuse of nonpayment of taxes.
Graft is an established institution in the public offices of Mexico. It is a right vested in the office itself, is recognized as such, and is respectable. There are two main functions attached to each public office, one a privilege, the other a duty. The privilege is that of using the special powers of the office for the amassing of a personal fortune; the duty is that of preventing the people from entering into any activities that may endanger the stability of the existing regime. Theoretically, the fulfillment of the duty is judged as balancing the harvest of the privilege, but with all offices and all places this is not so, and so we find offices of particularly rosy possibilities selling for a fixed price. Examples are those of the jefes politicos in districts where the slave trade is peculiarly remunerative, as at Pachuca, Oaxaca, Veracruz, Orizaba, Cordoba and Rio Blanco; of the districts in which the drafting of soldiers for the army is especially let to the jefes politicos; of the towns in which the gambling privileges are let as a monopoly to the mayors thereof; of the states in which there exist opportunities extraordinary for governors to graft off the army supply contracts.
Monopolies called "concessions," which are nothing more nor less than trusts created by governmental decree, are dealt in openly by the Mexican government. Some of these concessions are sold for cash, but the rule is to give them away gratis or for a nominal price, the real price being collected in political support. The public domain is sold in huge tracts for a nominal price or for nothing at all, the money price, when paid at all, averaging about fifty Mexican centavos an acre. But never does the government sell to any individual or company not of its own special choice; that is, the public domain is by no means open to all comers on equal terms. Public concessions worth millions of dollars-to use the water of a river for irrigation purposes, or for power, to engage in this or that monopoly, have been given away, but not indiscriminately. These things are the coin with which political support is bought and as such are grafts, pure and simple.
Public action of any sort is never taken for the sake of improving the condition of the common people. It is taken with a view to making the government more secure in its position. Mexico is a land of special privileges extraordinary, though frequently special privileges are provided for in the name of the common people. An instance is that of the "Agricultural Bank," which was created in 1908. To read the press reports concerning the purpose of this bank one would imagine that the government had launched into a gigantic and benevolent scheme to re-establish its expropriated people in agriculture. The purpose, it was said, was to loan money to needy farmers. But nothing could be farther from the truth, for the purpose is to help out the rich farmer, and only the richest in the land. The bank has now been loaning money for two years, but so far not a single case has been recorded in which aid was given to help a farm that comprised less than thousands of acres. Millions have been loaned on private irrigation projects, but never in lumps of less than several tens of thousands. In the United States the farmer class is an humble class indeed; in Mexico the typical farmer is the king of millionaires, a little potentate. In Mexico, because of the special privileges given by the government, medievalism still prevails outside the cities. The barons are richer and more powerful than were the landed aristocrats before the French Revolution, and the canaille poorer, more miserable.
And the special financial privileges centering in the cities are no less remarkable than the special privileges given to the exploiters of the hacienda slave. There is a financial ring consisting of members of the Diaz machine and their close associates, who pluck all the financial plums of the "republic," who get the contracts, the franchises and the concessions, and whom the large aggregations of foreign capital which secure a footing in the country find it necessary to take as coupon-clipping partners. The "Banco National," an institution having some fifty-four branches and which has been compared flatteringly to the Bank of England, is the special financial vehicle of the government camarilla. It monopolizes the major portion of the banking business of the country and is a convenient cloak for the larger grafts, such as the railway merger, the true significance of which I shall present in a future chapter.
Diaz encourages foreign capital, for foreign capital means the support of foreign governments. American capital has a smoother time with Diaz than it has even with its own government, which is very fine from the point of view of American capital, but not so good from the point of view of the Mexican people. Diaz has even entered into direct partnership with certain aggregations of foreign capital, granting these aggregations special privileges in some lines which he has refused to his own millionaires. These foreign partnerships which Diaz has formed has made his government international insofar as the props which support his system are concerned. The certainty of foreign intervention in his favor has been one of the powerful forces which have prevented the Mexican people from using arms to remove a ruler who imposed himself upon them by the use of arms.
When I come to deal with the American partners of Diaz I mention those of no other nationality in the same breath, but it will be well to bear in mind that England, especially, is nearly as heavily as interested in Mexico as is the United States. While this country has $900,000,000 (these are the figures given by Consul General Shanklin about the first of the year 1910) invested in Mexico, England (according to the South American Journal) has $750,000,000. However, these figures by no means represent the ratio between the degree of political influence exerted by the two countries. There the United States bests all the other countries combined.
In this chapter I have attempted to give the reader an idea of the means which General Diaz employed to attract support to his government. To sum up, by means of a careful placing of public offices, public contracts and special privileges of multitudinous sorts, Diaz absorbed all of the more powerful men and interests within his sphere and made them a part of his machine. Gradually the country passed into the hands of his office holders, their friends, and foreigners. And for this the people paid, not only with their lands, but with their flesh and blood. They paid in peonage and slavery. For this they forfeited liberty, democracy and the blessings of progress.