two of these lines,
the Mexican National and Mexican Central Railways. These railways are
two great arteries of travel, as elsewhere described, connecting the
City of Mexico with the United States. This action of the Mexican
Government, which is somewhat of a novel procedure, and an attempt to
carry out the problem of State co-operation with private enterprise, is
conceded to be advantageous to the interests of the two combined
companies to a large extent, whilst it secures to the country the
working of the lines in the interest of the country, and eliminates the
possible element of "rate-war" competition. On the other hand, it is to
be recollected that State ownership and working of railways is
generally disastrous, especially in North or South America, where State
enterprise tends to become a corrupt political machine. But it is far
from probable that this condition will be brought about in this
instance, and the operation will serve rather as an object lesson.

Another restrictive tendency is shown in the bringing forward,
recently, of a Bill for the enacting of a law that mining property
should only be acquirable by citizens of the Republic, and this,
although it has been shelved, is likely to be brought forward in future
years. Such matters are inevitable in the course of time, and the
policy of inducing foreign capital to enter a new country, which is
absolutely necessary to its well-being, has naturally to undergo some
modification when such a country reaches a certain stage of
development.

The present stable condition of Mexican Government finance is shown by
the budget statements for the fiscal year 1908-1909, as presented by
the Minister of Finance. The figures are as follows, in round
numbers:--

Mex. Dols.
Estimated normal revenue . . . . . . . 103,385,000
Estimated normal expenditure . . . . . 103,204,000
-----------
181,000
=======

As before stated, an annual surplus has been forthcoming since the year
1895, with some fluctuations. Out of these increasing surpluses large
sums have been spent upon important public works, which have been
elements for the commercial development of the country and its growing
trade. In addition to this, foreign loans have been contracted for the
completion of such public works. The loan of 1905, for the sum