18, 1910, the population being 553,446. Commerce.-Commercial conditions, which are altogether agricultural and mining, made no real progress during the year. Better steamship connection was made with the east coast, and the banana industry remained normal. MEXICO The Revolution.-General Porfirio Diaz, on Sept. 16, 1910, opened Congress with words of congratulation on the accomplishments of the century passed since the declaration of independence, and prophesied equal achievement for the beginning century. On Dec. 1, 1910, when Diaz took the oath of office for the eighth time as President of the Republic, his outlook on the future was apparently quite as hopeful, but a note of uncertainty was detected, which, however, gave but a faint sense of the events actually taking place in the country. His assurance of a steadily maintained prosperity was nevertheless as strong as ever. of the candidacy of Francisco Ma- The Maderistas, toward the end of Nov. (1910) stirred uprisings in Durango and Chihuahua. Accidentally the party was aided by an anti-American sentiment in the country, which had been fostered by the growing strength of United States investments in Mexico; the cause of the immediate excitement was the lynching (Nov. 3, 1910) in Texas of a man named Rodriguez who, it was claimed, was a Mexican citizen and whose guilt had not been proven. The common people, mistakenly assuming that Madero's move, as it occurred near the border, was to some extent a protest against the government's lack of energy in this case, joined him in numbers. It was soon seen, however, that redress of such a grievance was unthought of, but by that time the weakness of the Mexican government was disclosed, and the revolutionists took courage and made headway. By Feb. (1911) their army had established foci in Chihuahua and Coahuila. Meanwhile they had held possession of several northern railway lines, and thereby cut off the communication of the regular army with the northern bases. But during 1911 the entire organization of the Mexican government was changed. In order to understand what took place, it is necessary to examine the causes which led to the revolution, for it should be called such, although in most respects it differed from any other revolution that had ever before upset the routine of a Latin-American country. During the Diaz régime, which began with his first term in 1876, the nation had been conducted on a seemingly constitution-respecting system, but many features of the written constitution were in so far as was possible ignored. The governors of the states and other local as well as federal authorities obtained office by recorded votes, but unquestionably their power, delegated them from below, was actually derived from official influence above. In this way there grew up a party politically Smaller outbreaks now showed known as adherents of President themselves in various parts of the Diaz, but called also científicos, mem- country, and the Government atbers of which controlled the material tempted to crush them, giving as an conditions of the country. At the excuse for the evident slowness of time of the last election, disturb- movement against the center of the ances had arisen by the suppression revolution that the entire Republic must be at the same time safe- made. The revolutionists gained guarded. As the year advanced, courage and support even if they however, it became more and more seemed not to make headway otherevident that the Government was un-wise, but their chief aim, the capture able to cope with the rising revolu- of Ciudad Juarez, was drawing to a tionary forces, that it had no hold realization. The Maderistas had deon the patriotism of the people, and clared Francisco Madero Provisional that the army itself was suspiciously President, a nucleus of a government weak in loyalty to federal authority. was organized, and their recognition Neither public opinion both within of the gravity of the situation was and without Mexico, nor those who clearly evident. studied conditions at first hand, credited the possibility, even to the end of Feb., that the final outcome could be anything but the defeat of Madero. By March, uprisings were reported in Veracruz and Oaxaca, in the south. In the north, the revolutionists were seriously threatening the city of Chihuahua and the chief frontier customs port, Ciudad Juarez. Feb. 9 government troops had been able to enter Juarez, and Feb. 14 relief with 1,000 men held the city. But they were unable to repress the attacks upon many towns from Torreon north, and were really under siege themselves. Then, suddenly, toward the end of Feb., the United States ordered 20,000 troops to mobilize on the Mexican frontier. (See V, International Relations; and XXI, The Army.) Rumors told of interference, of protests from the Mexican government (which had the effect of retiring from the Mexican coast United States war vessels ordered thither at the same time), and of offers of compromise between the federal authorities and the revolutionists. Opinion throughout the world now acknowledged that Madero's party had become so strengthened that success was not improbable, and vague but well defined stories were current that at least Diaz would compromise with Madero, or even yield to pressure and resign the presidency. On April 1, 1911, Congress was opened with a speech from President Diaz. He stated at once that the Government had agreed to forbid a president to succeed himself, was prepared to reform the election laws, and to initiate measures to satisfy the popular demands. The Cabinet was changed thereupon, new blood displacing the científicos; law courts and judges were to be made more independent of the central government, and the immense land properties were to be gradually subdivided. These promises came too late. The people sought Diaz's retirement, not later, after the war should be over, but at once to end the régime of the científicos. Open negotiation was commenced with Madero; Francisco L. de la Barra, at the time Mexican Ambassador to the United States, was recalled and made Secretary for Foreign Affairs in the Cabinet, the date of the appointment being officially given as March 27. General Reyes was requested to return to his native country, and other changes were attempted. Toward the middle of April the battle of Agua Prieta was fought, in which United States citizens in Douglas, across the border, were killed, and great fear was expressed that the United States would interfere. Commendable restraint, however, was exercised by President Taft. On April 23 a truce of five days was signed, during which ne At the end of March, several of the gotiations were attempted with Masouthern states were in open re- dero, the basis being an agreement to bellion. Campeche, Yucatan, and recognize the revolutionary party, to Guerrero were harried by lawless replace governors (in the north, at bands. No place was any longer se- least) by Madero men, and to reform cure. Secretary of the Treasury the land laws. Meanwhile, the southLimantour came hastily back from ern revolutionists continued their acEurope to act as peacemaker, and tivity, seemingly independent of Mapromises of drastic reforms, espe- dero. Anarchy was beginning to cially in matters of land tenure and spread throughout the country. Mastate administration, were freely dero's party was by this time un- . willing to accept the concessions for Barra was immediately appointed which they had at first contended. provisional President, in accordance They demanded the resignation of with the constitution, as he had been President Diaz, of Vice-President Secretary of Foreign Affairs, and a Corral and the Cabinet. Fiercer at- new Cabinet was announced, in tacks were made upon Ciudad Jua- which Madero held no place, but was rez, the vital point of the revolution, well represented by strong personal and at last, after the most serious adherents to himself and his princibattle of the entire campaign, that ples. A special election for the prescity-the very important northern idency was announced by Congress frontier custom house-capitulated to to take place Oct. 1, 1911. FrancisMadero on May 9. On May 21 peace co Madero was immediately prowas signed. I claimed candidate for President, and Jose Pino Suarez, Governor of Yucatan, won the nomination (Sept. 2) for Vice-President. General Reyes, who had arrived from Europe, had a considerable following, but it was finally decided to withdraw his name from any proposition to nominate him as President to head a personal party. He left the capital Sept. 28 for Cuba, determined not to countenance any pretended revolution in his favor, and later, in Oct., from San Antonio, Texas, asserted the same attitude. May 25, General Porfirio Diaz resigned his office as President of the United Mexican States in these words: The Mexican people, who generously covered me with honors, who proclaimed me their leader during the international war, who patriotically as sisted me in the development of the country's industry and commerce, in the establishment of its credit, in surrounding the Republic with international respect, and obtaining for it an honorable place among nations; this people has risen in rebellion, asserting that my Oct. 1, Francisco Madero was electpresence as Chief Executive is the ed President of Mexico by about 95 cause of the insurrection. per cent. of all votes cast, Pino Suarez for Vice-President receiving about 30 per cent. of the votes. The election passed off with relative quiet, only a few disturbances and accidents being recorded. On Oct. 15 the 300 delegates of the electoral col I recognize no fact imputable to me which could have caused this social phenomenon; but assuming without admitting that I have been unconscientiously guilty, this possibility makes of me the person least able to reason out the guilt. Therefore, respecting as I have al ways respected the will of the people. lege met in the halls of the national and in conformity with Article 82 of Congress and cast their ballots in acthe Federal Constitution, I come before cordance with the above votes; Oct. the National Congress to relinquish un- 22 the Mexican Congress announced reservedly the Presidency of the Na- the result. Other minor parties were tion; and I do this with the more rea- in the field, but had little influence son, because, to retain the position, it would be necessary to continue to shed Mexican blood.. to endanger the nation's credit. to scatter its wealth, and to expose it to international conflicts. I hope, gentlemen, that when the passions accompanying every revolution are calmed, an impartial and approved study will bring out, in the national mind, such a judgment that will let me die with the conviction in my soul that my life, which I have consecrated and will continue to consecrate to my countrymen, has been justly estimated. upon the voters. The election seemed fairly conducted. Nov. 4, Señor de la Barra resigned, and Nov. 6 Madero was inaugurated, Suarez becoming Vice-President Nov. 23. Reconstruction.-The process of reconstruction occupied the entire summer. Not all the insurrectionists laid The outdown their arms at once. lying districts could not easily be controlled, and even the cities, especially Puebla, were the scene of unfortunate and occasionally bloody riots. In Torreon many Chinese were massacred, and China immediately instituted a claim for indemnity from which trouble was expectThe Elections.-Francisco de la ed; negotiations concerning this General Diaz withdrew with VicePresident Corral and the Cabinet, and he soon after left Mexico with his family to live in Spain. claim, as well as those from other ton) would be even greater than they nations whose citizens had suffered had been in 1910. The coffee crop damage, were taken up for adjust- was small but satisfactory. The ment by the provisional government, country began to export petroleum, and Mexico agreed to pay to China and international commerce fell off $1,550,000 for the 320 Chinese slain. only a little, although general busiIn Mexico City and elsewhere there ness suffered, as was unavoidable. were numerous strikes, largely from By July almost all of the United labor troubles, but partly of politi- States troops had been retired from cal origin. Business was disorgan- the frontier, as no further disturbized, and the people suffered hard- ance in that neighborhood was to be ships in many ways. Political dis- anticipated, but vigilance was conturbances continued. On Nov. 18 Gen. stantly maintained. The permission Reyes was arrested by United States for the use by the United States of officials at San Antonio, charged with Magdalena Bay having expired, Mexviolating the neutrality laws. He was ico did not extend it. Public imreleased on bail and immediately dis- provements, such as the construction appeared, crossing into Mexico, where of the railway from the Isthmus of he endeavored to recruit an army. He Tehuantepec into Campeche, were was bitterly disappointed in the sup- again taken up. To meet the export he received, and in despair sur-traordinary costs of the war, the rendered to Mexican authorities on payment of revolutionary troops, of Dec. 25. Lawlessness, however, was public works and of reconstruction, everywhere apparent. The state of loans were proposed by the issuance Oaxaca seceded (Nov. 25), but nego- of national bonds. tiations for peace were active. Quiet had not been restored by the end of the year, and the outlook for steady improvement was not the brightest. Finance. Nevertheless, considering the tremendous changes that were resulting from reconstruction, the people and the government acted with admirable conservatism and self-control. Financial obligations were scrupulously met; when the new authorities assumed office (May 25) a balance of 62,483,119 pesos (about $31,242,500 gold) was found in the treasury, with which fund the debt remaining for the fiscal year (ending June 30) was met, leaving a balance of about 52,000,000 pesos ($26,000,000 gold), over and above a gold reserve of 12,000,000 pesos. The customs returns increased for the first half of the year above those of the same period in the previous year, but fell off for the second half; the national railways were reopened for traffic July 14; and in spite of the revolution the National Railways of Mexico was able to borrow (Nov. 10) $13,000,000 for improvements; the Veracruz, Tabasco and Campeche Railway was financed (English capital) and construction work started, somewhat later in the year, and all estimates gave promise that the agricultural crops (corn, wheat and cot Population. The census, taken during Oct., 1910, showed that the Republic had a population of 15,063,207, an increase of 1,455,948 since 1900. NICARAGUA Provisional Administration.-The President of the Republic was Adolfo Díaz, inaugurated May 11, 1911. For the time being, the nation is governed under a provisional law, issued Sept. 15, 1910, by acting President Juan J. Estrada, until a constitutional convention can be held to provide a new constitution. The National Constituent Assembly elected General Mena (Oct. 7) for President for 4 years. - International Relations. Many concessions, issued by Zelaya, either forfeited or declared illegal, have been repealed during the year as detrimental to the welfare of the country. A new issue of paper currency of 15,000,000 pesos (paper peso worth about $0.15, but fluctuating) replaced the old issues; this was a temporary measure in expectation of the treaty, signed in the United States, for the refunding of the foreign debt and the development of the country (see V, International Relations), sent to the Nicaraguan Con gress by the President (Oct. 6), but | Justice of the United States, of the which has not yet been approved by boundary line between Panama and the United States Senate. A prelimi- the Republic of Costa Rica. This nary report on conditions in Nicara- boundary, on the Pacific side, has algua was made by Ernest H. Wands, ready been accepted about halfway appointed by the United States Gov- across the isthmus, and on the Aternment as financial advisor to the lantic side the decision is virtually Republic of Nicaragua, and bankers ready, but in Oct. it was thought were selected to study financial con- best to send a commission of engi ditions. Diplomatic relations were re- neers into the area under discussion established between the two govern- in order to report with better knowlments by the appointment as U. S. edge than has ever been available on Minister of Elliott Northcott, who the physical conditions characteriztook up his residence in Managua ing the country through which the Feb. 14. Greytown (San Juan del line is to run. Norte) has been declared a free port. Railways, Immigration, and IndusIndustries.-Industrial conditions tries.-Apart from the Canal, the Reslowly improved, as every indication public of Panama progressed activewas given that the disturbances of ly during the year. The greatest imthe past years had ceased. A rail- provement in a national way was the way from the Atlantic coast to the authorization for raising a loan of west has had preliminary work done $10,000,000 to construct the Panama on it. The Government has pro to David railway; bids for this purvided for two schools of telegraphy, pose were advertised for. They were and in addition to its own wireless opened Aug. 31, but were unsatisfacstations (one at Bluefields) has au- tory; bills to modify the financial thorized others under private owner- conditions were vetoed (Oct. 15) by ship. The coffee and sugar crops were the President. Persistent effort has satisfactory. been made to encourage immigration into the Republic (apart from the Canal Zone), and on June 8 a special commissioner for immigration and colonization was appointed to carry propaganda abroad about the general advantages and opportunities in the country. Among industrial improvements should be noted a concession for a sugar plantation and factory near Colon, and the erection of wireless stations, also the agreement for a parcels post with the United States (Oct. 13). In the early part of the year a severe explosion took place in the arsenal at Managua, killing several persons; it was ascribed to political agency, but without subsequent proof. Dr. Jose Madriz, who had once, after Zelaya's downfall, been President for a few months, died in the City of Mexico in June. PANAMA Administration. The President, Finance and Education.-FinancialPablo Arosemena, was inaugurated ly the sound basis of last year was Oct. 5, 1910, to fill the unexpired maintained. The budget for 1911 term of Señor Obaldía, who had died and 1912 was fixed at $7,000,000, esin office. The government arranged timates for income and expenditure during the year for the national balancing at that figure. The Govelections that are to take place in ernment created a National School 1912. Considerable political discus- of Agriculture, a National School of sion was active in preparation for Telegraphy and a Printing Office, that event. Dr. Belisario Porras, the from public funds. The National InMinister from Panama to the United stitute, in its new buildings in PanStates, having been transferred from ama, was formally dedicated June a similar post in Costa Rica, was 8; its purpose is to unify and imcalled back in October (succeeded by prove the system of higher education Ricardo Arias), after having prac- of the Republic by merging the High tically completed the negotiations School, the College of Commerce and for the settlement, by arbitration Languages and the Normal School. under the decision of the Chief The census taken (Sept.) shows a |