The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-10-28

Held By Foreign Merchants Through a Long
Credit Systematic Reciprocity Treaty.

Special Correspondence of the Indianapolis Journal.
CHrHAuHUA. Mexico, Oct 23-Businsss in
Mexico 10 largely conducted on credit The
merchants of England, France and Germany
have been, AND still are, in the habit Of grant
ing such long credit to purchasers from this
country, that &c will require great effort, much
sacrifice and . lohe time to divert to the United
States that large portion OF the trade of Mexico
which should have gone there long ago.
Formerly the merchants Of Mexico purchased
their goods in Europe on one years time. with
out i~userest, with ne privilege of another years
time, IL necessary. Att per cent This In
duced many of them to purchase large stocks.
and in order to dispose of these goods. they free
ly granted their customers a credit OF from six
to ten months, always, however. adding q large
margin Of profit to compensate for the time thus
given. This system Of extended credits natur.
ally led to overpurchase on the part or many
debtors, and too often ended 10 disaster to both
dealer and creditor. Recently credits have been
somewhat shortened, but even now . credit OF
from six to tan months 10 customary on Euro
pean invoices Prior to the coming Of railroads
to this country long credits were . necessity,
because Of the fact that shipments from Europe
and evan from the United. States, couldsnos
possibly reach the purchasers in the interior
short Of from four to six months A credit,
therefore; Of less than one year would
hardly furnish time to dispose OF
the merchandise and make collections
and returna This explains Why the
merchants Of foreign countries, whore money 10
cheap and mercantile houses are strong, able
and willing to erantlong credits, long since took
possession Of the trade Of Mexico, and to this
day control IL 70 q very great extent The
American merchant generally wants al invoices
paid within thirty to ninety days. and does not
look far from home for trade. where longer time
10 demanded. With the advent Of railroads, the
manner Of doing business here viii undergo .
radical change. The change will. however, be
gradual, for the Mexican people are slow 70
adopt new customs or to abandon old ones. The
American commercial traveller has heretofore
proved equal to almost any emergency. and In
time will doubtless achieve . great success in
this now unpromising field.
One way by which trade might be largely de-
vsloped in Mexico to the benefit Of the Uoitsd
States would be by taking MP and ratifyine the
reciprocity treaty which has been pending in
Congress for q very long time In this treaty
the United States secures large ADVANTAGES and
grants but little in return. It admits to Mexico
a few articles that are extensively manufactured
in the States, and greatly In demand in this
country. The approval Of the treaty would open
o door through which American dealers and
manufacturer would find their way here and
start the current. of trade TO the north.
The strong opposition TO this treaty came from
the sugar-plsuters of the South, but they were
fighting something which had in IL no danger 20
their interests. The Mexicans do not produce
enough sugar for homo consumption, and that OF
an inferior grade a. eompar ed with the product
OF most other suRar-producing countries. The
retail price Of q common dsrk-colored domestic
sugar in this part of Mexico IL 10 cents . pound.
With sugar selling 10 the United States at from
6 to 8 cents 0 pound. 90 IL now is, with but little
prospect Of any great advance In the future, 1t
is not probable that the crude sugars OF Mexico
will ever successfully compete with the products
of either the United States or Cuba But o
small portion Of Mexican territory 10 adapted to
sugar culture, ane even in the localities best
suited to this industry the scarcity OF water
renders the business precarious and expensive
Sweets Of all kinds are largely consumed by the
people of Mexico. With . fair system OF trade
once established between the two countries. and
with an improvement in the condition Of the
people here. which would naturally follow. 1t 70
quite probable that sugar from the United States
would find q market here instead or being
brought into competition with the Mexican prod
net at home.
Another thing that hampers trade between
the two nations 10 the differences In the
value Of the currency. For instance.
two half-dollars, United States coin
are worth Is cents more than q Mexican dollar
containing 81 grains, IN anomaly caused by the
fact that American silver coin is st par with
gold, thanks to the fiat" Of the government
The Mexican people do not understand this, and
say they do not care TO trade with q people who
will allow them but IS cents for their silver dol
lar which contains more pure silver that the
American dollar. 4,
The people Of Mexico Are very much inclined
to 60 in debt There IL . large class OF idle and
shiftless population 10 all the cities and large
towns who have no apparent means OF support,
and who manage TO live without work. The
laborers and working people generally are care
less and improvident, living from hand to
mouth" ~rsveline on feast days, which are fire.
qusnt here-fond Of cheap display, and strongly
addicted to gambling. 1t 10 quite customary for
the agricultural and mining laborer to enter
upon . voluntary 'peonaRe." or quasislavery
by accepting advances ffom his employer, and
then never having the ability, even il 10 has
the inclination to cancel the debt The frat re-
quest OF . servant, mechanic or employe OF any
kind is for advance Of . stipulated sum OF
money before commencing work or fulfilling any
engagement whatever. The pretext generally
Is that the advance asked for Is to pay of . debt
owing to the last employer. or TO redeem goods
or clothing in the hands Of the pawubroker.
Usually the demand il for more than 10 neces-
sary for such purposes, and the surplus will be
used In gambling or other injurious dissipation.
1t is not unusual for agricultural lsborers to
obtain two years wages in advance, sud in such
cases they are virtually enslaved to the employ
or making the advance. Freedom from such
serfdom can be obtained only by the payment
OF the debt with such increase a. the conscience
of the master permits him to add in the way OF
interest and fictitious items OF various kinds.
1t is useless for the 'pcon" to seek employment
elsewhere until the payment of the debt is COM
pleted. No ranchero vii. give employment TO o
laborer who is 10 debt to q neighbor.
1t will not seem strange, when the prev ailinS
rates Of wages are ascsrtained. that mechanics
and other laborine me-, rarely accumulate mon
ey or property, or that the ''psons" who owe
money and bind themselves to work it out are
unable to cancel the debt aud escape from servi-
tude. A journeyman mechanic earns from sc
cents 70 81 a day. Sundays and the many feast
days excepted. Common farm hands receive 20
to 40 cents; miners get so cents to 81. The en-
| shaved peon is paid from 81 TO So dollars q
month. with board, the cost Of which is not to
exceed 9 cent? b day. A soldier OF the Mexican
republic 10 paid 81 cents . day, out Of which be
must furnish HE own provisions. The Mexican