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120 ; and the expenses of the government and the requirements of business are so enormous that money must be had, no matter what measures are necessary.

There are some Mexicans who declare that the banks will be reimbursed; but the time when this will be possible depends upon how soon the government obtains foreign financial aid.

Mexico has endeavoured to obtain, through agents, a loan from New York bankers or from the United States Government. Early in August, 1917, a report reached Mexico City that the United States would veto a loan if the bankers floated it. On August twentieth the White House announced that, in the opinion of the United States Government, a loan would not be looked upon with disfavour. This was done to assure the Mexican Government that the United States was not trying to hinder Mexico in her financial aspirations; but as the despatch appeared in the Mexican newspapers it gave the impression that the United States Government had sanctioned a loan, and that all Mexico had to do was to send a ship to New York for the money.

The biggest financial obstacle is the army. Nearly seventy per cent of the annual budget goes to the army and navy. Since there is no navy, this is purely an army expense. The pay rolls contain nearly one hundred and fifteen thousand names; but, according to conservative estimates, there are not fifty thousand soldiers in all