In May, 1916, the estimated revenue of the Constitutionalist Government was four million pesos, about two million dollars a month. Fourteen months later the estimated revenue was 107,000,000 pesos annually, but the budget called for an expenditure of 80,000,000 pesos more than the income. The Carranza Government is operating on a cash basis now and is spending more than it is making, although government officials are being paid only seventy-five per cent of their salaries in cash. This deficit does not take into consideration any of the foreign obligations.
It is the contention of the American experts and of certain government officials that through governmental economies this deficit can be cut down so that it will not be "dangerous" and new bonds can be issued to replace bonds held in foreign countries.
The other view of the financial situation, which I found the predominant one, is that the present government cannot continue without the aid of foreign capital. This would seem to be the belief of President Carranza, too, inasmuch as he asked the federal Congress for authority to raise 300,000,000 pesos, that is, $150,000,000.
On July 7th, 1917, El Universal printed the following message which President Carranza sent to the Chamber of Deputies:
"To the Secretaries of the Chamber of Deputies: for its Constitutional effect: I beg to send
