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134 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 Nacional," 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