During the summer of 1914, while Mr. M. C. Rolland was studying the financial system of the United States for Carranza, he came in contact with Mr. Charles Ferguson, who had devoted a year to investigating financial conditions in Europe. Mr. Rolland suggested the need of a democratic finance in Mexico, so as to liberate it from the financial system left over by J. Y. Limantour. The Mexican and the American investigators exchanged their views, and as both were on mutual and sympathetic ground with a perfect understanding of the subject, Mr. M. C. Rolland begged Mr. Ferguson to crystallize his ideas into an article. The following chapter is a simple outline of the idea which is behind the revolutionary reforms of all vital questions in Mexico. Mr. Charles Ferguson was for a time one of the leading editorial writers of a well known Metropolitan paper. He was sent abroad by President Wilson to investigate the banking system of Europe. Mr. Ferguson is considered one of the greatest authorities on the subject of finance and banking in the United States. Under the conditions of capitalistic and corporate organization and of universal banking and exchange that have spread throughout the world during the last two or three generations, the problem of democratic politics has become an entirely new problem. The old solutions, the ideas of Rousseau, Jefferson, Juarez, have become, in large part, inapplicable. The change is mainly due to the strength of the modern business organization. The business organization tends to become stronger than the democratic state, because it deals more directly with the forces of nature and with the every day interests of ordinary men. Everywhere in Europe, in the modern States of Asia and Africa, and in North and South America, there is a struggle going on between the business organization and the economic rights of the people. This world-wide struggle has shown its acutest phases in Mexico. The Mexican problem cannot be solved merely by the establishment of land reform, a wide suffrage and a representative parliament. These things are good and necessary, but they are not enough. If the banking and credit system of Mexico is left to settle back into the general lines approved by Diaz and Limantour, or by the orthodox financial opinion of Europe, the banks of Mexico will contravene the work of the political revolution. And since the revolution cannot be wholly crushed, Mexico will continue to be a house divided against itself, and will utterly exhaust itself in a continuing series of revolutions and counter-revolutions. The modern business system centres in the bank. If the democratic revolution is to prevail and stand fast, the business system of Mexico must be democratized. It is impossible to make business democratic otherwise than by making the bank democratic.