SECTION OF THE CONSTITUTION OF THE UNITED STATES OF MEXICO RELATIVE TO THE LAW

Art. 5-..

OF REFORM.

The State cannot admit the validity of any contract, pact or agreement, by virtue of which a man impairs, loses or irrevocably sacrifices his liberty, whether by reason of work, of education or of religio

The

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and with the loans needed to finance the country and public works. In this struggle she followed the same beaten path of the younger and, even of some of the older countries of America, for whom political indepen dence is still a new proposition.

The result of the loans obtained and the public works undertaken was a national disaster. The people were burdened so heavily with taxes, that at one time New Zealand was no longer a country favorable to Immigration and a crisis was the result. Capital was withdrawn and misery and discontent were felt throughout the land. What was then done? A revolution broke out. but happily there was no clerical party with which to contend and the people did not resort to the use of arms. Wherever religious sentiments are exploited, then blood is shed. In this case war was only made against the Conservative Party who naturally defended their interests. I repeat, the people did not employ the use of arms for this very circumstance, which is not to be compared with ours, in which the religious question plays such an important part. This social revolution solved the problem which is the same that interests us, and of which the whole world is

aware.

THE ETERNAL PROBLEM

The people of New Zealand realized that the cause of all their trouble was the great unequalness in the distribution of lands-the eternal problem. It was impossible to augment national products and increase wealth which would have put finances on an equitable basis. There. just as here, this question was the starting point, and a moral war was engaged against farge land owners. First there was a progressive tax system which was fixed at a certain per cent of the intrinsic value of the property, according to its size This method, which has been suggested hy many of our countrymen. was a failure in New Zealand. The property owners preferred to pay increased taxes and increase the production of their lands rather than dvide them, and thus the people were duped out of

972.084
1611
no. 5

SPEECH BY LUIS CABRERA

BEFORE THE

KICO, D. F.

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olicy should be adopted, which authorized expropriation of all property, when needed by the people, regardless of whether or not it belonged to wealthy land owners, or to the natives. The Governemnt thus became the sole agent authorized to carry out any land transaction. Since then, in New Zealand, when the people need lands in any particular part of the country, the Government expropriates them, or pays the owner the value of the ground, and divides it accordingly among those who seek it. First, it was determined that the plots be paid for in annual installments, the Government exacting the introduction of certain reforms, however, before surrendering the property, which would oblige the colonist to stay on his property. This was done in order that the ground would become productive, thus increasing national wealth. This system of payments, with which the colonists could not always comply, caused much trouble; and too, a great amount of capital was needed to carry out the introduction of improvements. Another plan advanced was to rent for the term of twenty years, certain conditions of improvement being necessary. At the end of this term the property might be bought. All these trials prepared the way for the final scientific solution which has been established and which facilitates matters for the farmer. By this last system the lots are turned over on a perpetuity rent basis; said rent corresponding to the amount of a reasonable interest on the intrinsic value of the property. By this way capital is not needed at the be ginning to acquire ownership of the land, nor must labor be pressed to pay the annual installment, which is always higher than rent. This is especially true of the first years when the task is more difficult and less productive. The system also obliges the owner to carry out certain improvements during the first ten years and thus, by creating interests on the property which he will not willingly abandon, the State is guaranteed the presence of the colonist on his farm which national interests require that he should attend.

RESULTS OF NEW POLICY

The results of this new fundamental policy of New Zealand were soon visible. Men poured into the country

4

STATES OF MEXICO RELATIVE TO THE LAW

Art. 5—.

OF REFORM.

The State cannot admit the validity of any contract, pact or agreement, by virtue of which a man impairs, loses or irrevocably sacrifices his liberty, whether by reason of work, of education or of reli

The

nor ca nomin

It cani tion on Art.

Reli acter, under

or of m owners buildir, service they b istratic Civil the for not onl capital

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from the large cities and small productive ranches and
plantations sprung up on all sides. Later on, the State,
with this same socialistic character, entered into a new
sphere of action. It was deemed that all corporations
of public utility should no longer be in the hands of
speculators and that the people had a right to enjoy
robbed.
were benefits without being
Consequently,
the railroads, telegraphs, mail services, telephones, etc.,
were acquired by the State and efficiently managed,
the profits being only what was actually needed to pay
for the interests on the capital required to exploit

them.

The industries suffered as the result of this socialistic move and the divine rights of capital were impair-d. In order that manufacturers should earn equitable profits and that at the same time the laborer should be sufficiently remunerated and protected, arbitrators were named by the Government. Working hours were shortened, hygienic conditions of working shops were investigated and bettered, and a law prohibiting the employment of boys of sixteen and girls of eighteen years to work in factories was passed. This resulted in a rapid betterment of the wellfare of the people. The Government has, always with the same socialistic tendency, corrected any abuse or attempt at theft on the part of exploiters.

When, owing to different circumstances, capitalista increased the price of coal, the Government opened its own mines, and prices were inmediately lowered. (We should do the same with our oil industries) When Surety Companies extortioned the public through high rates, the Government established an Isurance Department which, based on a precise study of statistics. favored the people and obliged the Surety Companies to be just in their dealings.

FOUNDATION OF AGRICULTURAL BANKS

As it is and was easier for the Government than for private individuals to acquire loans, vast sums were borrowed by the Government and Agricultural Banks were opened. which loaned money to colonists on very

who and were always ready to exploit the wants of the people.

A great part of the newly acquired funds were invested in the construction of homes for laborers, who acquired them by the payment of a redeemable rent, less than the amount capitalists imposed upon them. As the outcome of this paternal, kind and clever policy, New Zealand has in twenty-five years become one of the most prosperous lands, and industry has thriven more than in any country in the world. Now that all sources of wealth are exploited, New Zealand can with ease bear the burden of her public debt, which is, in proportion, the largest in the world. The same could not he said when only public works and immigration were relied upon.

WHAT MEXICO CAN LEARN FROM
NEW ZEALAND

The more we study the adventures of New Zealand, the more import, do the practical results of the lesson become for Mexico. Because of our political subservience, owing to the power of the Conservative and Clerical party, we have never been able to become economically independent, and our situation is very much like that of New Zealand thirty years ago. We all know that in our country we have always been cursed with the unfair distribution of wealth. As we were originally conquered by the Spaniards, the formed large estates, which have for centuries been owned and exploited by them. The people, always oppressed and betrayed, thounght that by obtaining their political liberty they would naturally increase their wellfare, hence the reason why we have undertaken the war of independence. The Conservative Party had always deceived us with a three coloread flag. Afterwards the Conservative and Clerical party (the privileged few) upholding our "caciques" (men of our own blood) robbed our people during another long century. Our poor race rises and follows and stumbles, always looking on high, searching for its well-being. In spite of all personalities, of all political parties of all

ICO, D. F.