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‹Better GutenbergInsurgent MexicoChapter III — A Peon in Politics · 20 of 47Contents›

Insurgent Mexico

by John Reed

20 of 47 · Contents · Download EPUB

Chapter III A Peon in Politics

Villa proclaimed himself military governor of the State of Chihuahua, and began the extraordinary experiment—extraordinary because he knew nothing about it—of creating a government for 800,000 people out of his head.

It has often been said that Villa succeeded because he had educated advisers. As a matter of fact, he was almost alone. What advisers he had spent most of their time answering his eager questions and doing what he told them. I used sometimes to go to the Governor’s palace early in the morning and wait for him in the Governor’s chamber. About eight o’clock Sylvestre Terrazzas, the Secretary of State, Sebastian Vargas, the State Treasurer, and Manuel Chao, then Interventor, would arrive, very bustling and busy, with huge piles of reports, suggestions and decrees which they had drawn up. Villa himself came in about eight-thirty, threw himself into a chair, and made them read out loud to him. Every minute he would interject a remark, correction or suggestion. Occasionally he waved his finger back and forward and said: “No sirve.” When they were all through he began rapidly and without a halt to outline the policy of the State of Chihuahua, legislative, financial, judicial, and even educational. When he came to a place that bothered him, he said: “How do they do that?” And then, after it was carefully explained to him: “Why?” Most of the acts and usages of government seemed to him extraordinarily unnecessary and snarled up. For example, his advisers proposed to finance the Revolution by issuing State bonds bearing 30 or 40 per cent. interest. He said, “I can understand why the State should pay something to people for the rent of their money, but how is it just to pay the whole sum back to them three or four times over?” He couldn’t see why rich men should be granted huge tracts of land and poor men should not. The whole complex structure of civilization was new to him. You had to be a philosopher to explain anything to Villa; and his advisers were only practical men.


There was the financial question. It came to Villa in this way. He noticed, all of a sudden, that there was no money in circulation. The farmers who produced meat and vegetables refused to come into the city markets any more because no one had any money to buy from them. The truth was that those possessing silver or Mexican bank-notes buried them in the ground. Chihuahua not being a manufacturing center, and the few factories there having closed down, there was nothing which could be exchanged for food. So, like a blight, the paralysis of the production of food began all at once and actual starvation stared at the town populations. I remember hearing vaguely of several highly elaborate plans for the relief of this condition put forward by Villa’s advisers. He himself said: “Why, if all they need is money, let’s print some.” So they inked up the printing press in the basement of the Governor’s palace and ran off two million pesos on strong paper, stamped with the signatures of government officials, and with Villa’s name printed across the middle in large letters. The counterfeit money, which afterward flooded El Paso, was distinguished from the original by the fact that the names of the officials were signed instead of stamped.

This first issue of currency was guaranteed by absolutely nothing but the name of Francisco Villa. It was issued chiefly to revive the petty internal commerce of the State so that the poor people could get food. And yet almost immediately it was bought by the banks of El Paso at 18 to 19 cents on the dollar because Villa guaranteed it.

Of course he knew nothing of the accepted ways of getting his money into circulation. He began to pay the army with it. On Christmas Day he called the poor people of Chihuahua together and gave them $15 apiece outright. Then he issued a short decree, ordering the acceptance of his money at par throughout the State. The succeeding Saturday the market-places of Chihuahua and the other nearby towns swarmed with farmers and with buyers. Villa issued another proclamation, fixing the price of beef at seven cents a pound, milk at five cents a quart, and bread at four cents a loaf. There was no famine in Chihuahua. But the big merchants, who had timidly reopened their stores for the first time since his entry into Chihuahua, placarded their goods with two sets of price marks—one for Mexican silver money and bank-bills, and the other for ‘Villa money.’ He stopped that by another decree, ordering sixty days’ imprisonment for anybody who discriminated against his currency.

But still the silver and bank-bills refused to come out of the ground, and these Villa needed to buy arms and supplies for his army. So he simply proclaimed to the people that after the tenth of February Mexican silver and bank-bills would be regarded as counterfeit, and that before that time they could be exchanged for his own money at par in the State Treasury. But the large sums of the rich still eluded him. Most of the financiers declared that it was all a bluff, and held on. But lo! on the morning of February tenth, a decree was pasted up on the walls all over Chihuahua City, announcing that from that time on all Mexican silver and bank-notes were counterfeit and could not be exchanged for Villa money in the Treasury, and anyone attempting to pass them was liable to sixty days in the penitentiary. A great howl went up, not only from the capitalists, but from the shrewd misers of distant villages.

About two weeks after the issue of this decree, I was taking lunch with Villa in the house which he had confiscated from Manuel Gomeros and used as his official residence. A delegation of three peons in sandals arrived from a village in the Tarahumare to protest against the Counterfeit Decree.

“But, mi General,” said the spokesman, “we did not hear of the decree until to-day. We have been using bank-bills and silver in our village. We had not seen your money, and we did not know....’

“You have a good deal of money?” interrupted Villa suddenly.

“Yes, mi General.”

“Three or four or five thousand, perhaps?”

“More than that, mi General!”

“Señores,” Villa squinted at them ferociously, “samples of my money reached your village within twenty-four hours after it was issued. You decided that my government would not last. You dug holes under your fireplaces and put the silver and bank-notes there. You knew of my first proclamation a day after it was posted up in the streets of Chihuahua, and you ignored it. The Counterfeit Decree you also knew as soon as it was issued. You thought there was always time to change if it became necessary. And then you got frightened, and you three, who have more money than anyone else in the village, got on your mules and rode down here. Señores, your money is counterfeit. You are poor men!”

“Valgame dios!” cried the oldest of the three, sweating profusely.

“But we are ruined, mi General!—I swear to you—We did not know—We would have accepted—There is no food in the village——”

The General in Chief meditated for a moment.

“I will give you one more chance,” he said, “not for you, but for the poor people of your village who can buy nothing. Next Wednesday at noon bring all your money, every cent of it, to the Treasury, and I will see what can be done.”

To the perspiring financiers who waited hat in hand out in the hall, the news spread by word of mouth; and Wednesday at high noon one could not pass the Treasury door for the eager mob gathered there.


Villa’s great passion was schools. He believed that land for the people and schools would settle every question of civilization. Schools were an obsession with him. Often I have heard him say: “When I passed such and such a street this morning I saw a lot of kids. Let’s put a school there.” Chihuahua has a population of under 40,000 people. At different times Villa established over fifty schools there. The great dream of his life has been to send his son to school in the United States, but at the opening of the term in February he had to abandon it because he didn’t have money enough to pay for a half year’s tuition.

No sooner had he taken over the government of Chihuahua than he put his army to work running the electric light plant, the street railways, the telephone, the water works and the Terrazzas flour mill. He delegated soldiers to administer the great haciendas which he had confiscated. He manned the slaughter-house with soldiers, and sold Terrazzas’s beef to the people for the government. A thousand of them he put in the streets of the city as civil police, prohibiting on pain of death stealing, or the sale of liquor to the army. A soldier who got drunk was shot. He even tried to run the brewery with soldiers, but failed because he couldn’t find an expert maltster. “The only thing to do with soldiers in time of peace,” said Villa, “is to put them to work. An idle soldier is always thinking of war.”

In the matter of the political enemies of the Revolution he was just as simple, just as effective. Two hours after he entered the Governor’s palace the foreign consuls came in a body to ask his protection for 200 Federal soldiers who had been left as a police force at the request of the foreigners. Before answering them, Villa said suddenly: “Which is the Spanish consul?” Scobell, the British vice-consul, said: “I represent the Spaniards.” “All right!” snapped Villa. “Tell them to begin to pack. Any Spaniard caught within the boundaries of this State after five days will be escorted to the nearest wall by a firing squad.”

The consuls gave a gasp of horror. Scobell began a violent protest, but Villa cut him short.

“This is not a sudden determination on my part,” he said; “I have been thinking about this since 1910. The Spaniards must go.”

Letcher, the American consul, said: “General, I don’t question your motives, but I think you are making a grave political mistake in expelling the Spaniards. The government at Washington will hesitate a long time before becoming friendly to a party which makes use of such barbarous measures.”

“Señor Consul,” answered Villa, “we Mexicans have had three hundred years of the Spaniards. They have not changed in character since the Conquistadores. They disrupted the Indian empire and enslaved the people. We did not ask them to mingle their blood with ours. Twice we drove them out of Mexico and allowed them to return with the same rights as Mexicans, and they used these rights to steal away our land, to make the people slaves, and to take up arms against the cause of liberty. They supported Porfirio Diaz. They were perniciously active in politics. It was the Spaniards who framed the plot that put Huerta in the palace. When Madero was murdered the Spaniards in every State in the Republic held banquets of rejoicing. They thrust on us the greatest superstition the world has ever known—the Catholic Church. They ought to be killed for that alone. I consider we are being very generous with them.”

Scobell insisted vehemently that five days was too short a time, that he couldn’t possibly reach all the Spaniards in the State by that time; so Villa extended the time to ten days.

The rich Mexicans who had oppressed the people and opposed the Revolution, he expelled promptly from the State and confiscated their vast holdings. By a simple stroke of the pen the 17,000,000 acres and innumerable business enterprises of the Terrazzas family became the property of the Constitutionalist government, as well as the great lands of the Creel family and the magnificent palaces which were their town houses. Remembering, however, how the Terrazzas exiles had once financed the Orozco Revolution, he imprisoned Don Luis Terrazzas, Jr., as a hostage in his own house in Chihuahua. Some particularly obnoxious political enemies were promptly executed in the penitentiary. The Revolution possesses a black book in which are set down the names, offenses, and property of those who have oppressed and robbed the people. The Germans, who had been particularly active politically, the Englishmen and Americans, he does not yet dare to molest. Their pages in the black book will be opened when the Constitutionalist government is established in Mexico City; and there, too, he will settle the account of the Mexican people with the Catholic Church.


Villa knew that the reserve of the Banco Minero, amounting to about $500,000 gold, was hidden somewhere in Chihuahua. Don Luis Terrazzas, Jr., was a director of that bank. When he refused to divulge the hiding-place of the money, Villa and a squad of soldiers took him out of his house one night, rode him on a mule out into the desert, and strung him up to a tree by the neck. He was cut down just in time to save his life, and led Villa to an old forge in the Terrazzas iron works, under which was discovered the reserve of the Banco Minero. Terrazzas went back to prison badly shaken, and Villa sent word to his father in El Paso that he would release the son upon payment of $500,000 ransom.

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