In 1905 a sumptuous legislative palace, a national Pantheon for the ashes of the great men of Mexico, and a monument to perpetuate the heroes of the independence were under construction, at a cost of thirty million dollars.

The trade of Mexico is chiefly a transit trade, but it has now extensive cotton and linen factories, paper mills, tobacco and cigars, gold and silver work, pottery, silverware, cork, bricks, and soap—many of them due to foreign enterprise.

History of Mexico.—The history of ancient Mexico exhibits two distinct and widely differing periods—that of the Toltecs and that of the Aztecs. Both were Nahua nations, speaking a language which survives in Mexico to this day.

The eighth century is the traditional date when the Toltecs are related to have come from the north, from some undefined locality, bringing to Anahuac, or Mexico, its oldest and its highest native civilization, about 1325. A [672] hundred years later, under the reign of Montezuma II., they had attained a suzerainty over all the tribes from the Atlantic to the Pacific.

On the coming of the Spaniards under Cortez in 1519, Aztec rule was finally overthrown, chiefly by means of the assistance the Spaniards received from those peoples whom the Aztecs had held in cruel bondage.

In 1540 Mexico was united with other American territories—at one time all the country from Panama to Vancouver’s Island—under the name of New Spain, and governed by viceroys (fifty-seven in all) appointed by the mother country, Spain. For nearly three centuries it may be said to have lain in sullen submission beneath its cruel conqueror’s heel, till in 1810 the discontent, which had been gaining ground against the vice-regal power during the war of Spain with Napoleon, broke into open rebellion under the leadership of a country priest named Hidalgo.

In 1822 General Iturbide had himself proclaimed emperor; but the guerilla leader Guerrero, his former ally, and General Santa Anna raised the republican standard, and in 1823 he was banished to Italy with a pension. Returning the following year he was taken and shot, and the federal republic of Mexico was finally established.

For more than half a century after this (till 1876) the history of Mexico is a record of chronic disorder and civil war. In 1836 Texas secured its independence, for which it had struggled for several years, and which Mexico was compelled to recognize in 1845. In that year Texas was incorporated with the United States, and after the Mexican war of 1848 Mexico ceded half a million square miles to the United States.

The Emperor Napoleon III. declared war against the president, Juarez, in 1862; the Austrian Emperor of Mexico, Maximilian, imposed by the French, was executed in 1867, and the republic re-established. Diaz was re-elected president for the eighth time in 1910, but, being too autocratic, had to resign under pressure of revolution in 1911. In the ensuing welter of revolts and conspiracies President Madero was set aside and killed, and the United States applied pressure to eliminate President Huerta. From this time on the relations of the United States with Mexico became more strained. During 1915-1916, following repeated attacks made by bands of Mexican bandits upon American border towns and assaults by Mexicans upon Americans and other foreigners in Mexico, the relations between the two countries approached a crisis. Early in 1916 nineteen men, nearly all of them Americans, were taken from a train near Chihuahua and killed by a band of bandits.

Conditions became still more tense when, on March 9, several hundred bandits led by Villa raided and burned the town of Columbus, N. M., killing nine American civilians and eight United States soldiers. On March 10 President Wilson ordered five thousand United States troops into Mexico to catch Villa, and two days later the first troops crossed the border. On March 16 the first clash occurred between Villa outposts and the American expeditionary force. On June 18 the war department ordered all the state militia mobilized, and within the next two weeks fifty thousand of the state soldiers had been rushed to the border.