WITH the exception of Buenos Ayres and Santiago, Chili, the city of Mexico is the largest and the finest capital in Spanish America; but unfortunately the shadow of the sixteenth century still rests upon it. It wounds the pride of the Yankee tourist to discover that so little of our boasted influence has lapped over the border, and that the historic halls of the Montezumas are only spattered with the modern ideas we exemplify. The native traveller still prefers his donkey to the railroad train, and carries a burden upon his back instead of using a wagon. Water is still peddled about the capital of Mexico in jars, and the native farmer uses a plough whose pattern was old in the days of Moses. Nowhere do ancient and modern customs come into such intimate contrast as in the city of Mexico. The people are highly civilized in spots. Besides the most novel and recent product of modern science, one finds in use the crudest, rudest implement of antiquity. Types of four centuries can be seen in a single group in any of the plazas. Under the finest palaces, whose ceilings are frescoed by Italian artists, whose walls are covered with the rarest paintings, and shelter libraries selected with the choicest taste, one finds a common bodega, where the native drink is dealt out in gourds, and the peon stops to eat his tortilla. Women and men are seen carrying upon their heads enormous burdens through streets lighted by electricity, and stop to ask through a telephone where their load shall be delivered. The correspondence of the Government is dictated to stenographers and transcribed upon type-writers; and every form of modern improvement for the purpose of economizing time and saving labor is given the opportunity of a test, even if it is not permanently adopted. There is no Government that gives greater encouragement to inventive genius than the administration of President Diaz, and it has been one of the highest aims of his official career to modernize Mexico. The twelve years from 1876, when he came into power, until 1889, when his third term commenced, may be reckoned the progressive age of our neighborly republic; but the common people are still prejudiced against innovations, and resist them. In all the public places, and at the entrance of the post-office, are men squatting upon the pavement, with an inkhorn and a pad of paper, whose business is to conduct the correspondence of those whose literary attainments are unequal to the task. Such odd things are still to be seen at the capital of a nation that subsidizes steamship lines and railways, and supports schools where all the modern languages and sciences are taught, and has a compulsory education law upon its statute-books. In the old Inquisition Building, where the bodies of Jews and heretics have been racked and roasted, is a medical college, sustained by the Government for the free education of all students whose attainments reach the standard of matriculation; and bones are now sawn asunder in the name of science instead of religion.