large share of the country, and corruption and brutality of the army.
Carranza attempted to carry out those provisions of the new constitution which vests control of oil lands in the nation and to gain for his depleted finances some of the wealth that the immense production of oil was bringing to foreign investors. His decrees, requiring registration of holdings and establishing taxes on oil output and lands, were claimed by the oil companies to indicate intention to confiscate. They protested all decrees as unconstitutional, refused to pay taxes and were backed by their respective governments.[1] Meanwhile the companies were paying Pelaez, leader of an outlaw group, $200,000 per month to protect their oil fields.[2]
After entering the world war, the United States declared an embargo on both food stuffs and gold going into Mexican territory, which added to the economic distress following the years of warfare. Carranza as well as opposing factions financed their campaigns on paper money with the result, that speculators made fortunes while the people starved.[3] By using military force as the chief basis of his power, crushing instead of promoting social reconstruction, Carranza allowed the feudalistic army to get entirely out of hand. The whole country was ravaged.[4]
Obregon, Calles and De la Huerta, who occupied leading positions in the cabinet of Carranza, became disgusted with the conduct of his administration, resigned and retired to Sonora, where De la Huerta was elected governor, and Calles, organ-
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