y of natural products and conditions of the states
forming the Federal Republic are thus shown. Each state has its proper
machinery of government, civil control, and education, and each is
working out its own destiny, slowly, but surely, in conjunction with
its neighbours of the Federation.

CHAPTER XVI
MEXICAN FINANCE, INDUSTRIES, AND RAILWAYS

Financial rise of Mexico--Tendencies toward restriction against
foreigners--National control of railways--Successful financial
administration--Favourable budgets--Good trade conditions--Foreign
liabilities--Character of exports and imports--Commerce with foreign
nations--Banks and currency--Principal industries--Manufacturing
conditions--Labour, water-power, and electric installations--Textile
industry, tobacco, iron and steel, paper, breweries, etc.--Railways--
The Mexican Railway--The Mexican Central Railway--The National
Railroad--The Interoceanic--Governmental consolidation--The Tehuantepec
Railway--Port of Salina Cruz--Other railway systems.

The rise of Mexico, within a few years, from the position of a poor and
somewhat discredited state to that of a nation with a regular budget
surplus, and a credit in European markets which provides her with loans
without other security than her good faith, has been very generally
acclaimed as the beginning of a new era in the Spanish-American world.

Previous to the year 1893 it had never happened in the history of
Mexico that the nation's income exceeded its expenditure. The country
had always spent more than it earned, and year after year its budget
showed heavy deficits, with an ever-menacing condition resulting
thereon. But that unfortunate state belongs now to past history, and
since the weathering of the storm of the silver crisis of 1894 Mexico
has had no relapse, and the budget has shown an unbroken and increasing
balance in favour of the Treasury. This satisfactory financial
condition is partly consequent upon the general world-march of commerce
and the era of progress which has dawned for the Spanish-American world
generally. It was time that such should occur! But, apart from these
general causes, or rather closely allied thereto, as regards Mexico,
has been the efficient political administration which the country has
enjoyed, and the able financial control of its resources and revenue.
The name of the presiding genius of the financial department of
Mexico's administration has become well known in financial circl