oyalty to the
new regime.

Among the numerous measures of material improvement which Diaz undertook
during his first term, the construction of railways was the most
important. The size of the country, its want of navigable rivers, and
its relatively small and widely scattered population, made imperative
the establishment of these means of communication. Despite the
misgivings of many intelligent Mexicans that the presence of foreign
capital would impair local independence in some way, Diaz laid the
foundations of future national prosperity by granting concessions to
the Mexican Central and National Mexican companies, which soon began
construction. Under his successor a national bank was created; and
when Diaz was again elected he readjusted the existing foreign debt and
boldly contracted new debts abroad.

At the close of his first term, in 1880, a surplus in the treasury was
not so great a novelty as the circumstance altogether unique in the
political annals of Mexico-that Diaz turned over the presidency
in peaceful fashion to his properly elected successor! He did so
reluctantly, to be sure, but he could not afford just yet to ignore his
own avowed principle, which had been made a part of the constitution
shortly after his accession. Although the confidence he reposed in that
successor was not entirely justified, the immense personal popularity
of Diaz saved the prestige of the new chief magistrate. Under his
administration the constitution was amended in such a way as to deprive
the Chief Justice of the privilege of replacing the President in case
of a vacancy, thus eliminating that official from politics. After his
resumption of office, Diaz had the fundamental law modified anew, so
as to permit the reelection of a President for one term only! For this
change, inconsistent though it may seem, Diaz was not alone responsible.
Circumstances had changed, and the constitution had to change with them.

Had the "United Provinces of Central America," as they came forth from
under the rule of Spain, seen fit to abstain from following in the
unsteady footsteps of Mexico up to the time of the accession of Diaz to
power, had they done nothing more than develop their natural wealth and
utilize their admirable geographical situation, they might have become
prosperous and kept their corporate name. As it was, their history
for upwards of forty years had little to record other than a
momentary cohesion and a subsequent lapse int