Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-07-25

-, otaers successors. are an Austrian hrm.
They have a capital Of s400 900, and the origi.
mai Beneckies made . big fortune and wen,
BACK to Europe some years ago, leaving the
business to their successors who are said to be
doing equally we'll. Shirer Company are also
doing big business, and an American bank ia
shortly to be opened, which promises to make
itself one OF the leading monetary institutions
OF the city. This bank will do business on
American princfpies It will not have SO much
| red tape as the other banks. and it will not
need an introduction from depositors and the
! assurance that the deposit will be
banks are said to require in order that the
| privilege Of leaving their money may be
granted. 1t will be . savings bank and will
pay 8 per cent for time deposits. 1t will
h have the right OF safety deposit and the ware
eyes granted TO other banks, save that
Of issuing notes. and tho government will
not charge it stamp taxes for its business be-
tween its branches. 1t will put up big build
ing and All OF the materials for this are to come
In free OF duty and there il no doubt Of its sue
cess. As the only savings bank Of any i'm
portance IN the country, and the only one
In Mexico City. 1t cannot fail to make big
profits snd 1t will be run and pa
tronized by men Of large meana- One of
the incorporation is the firm Of Morris Il
Butte OF Kansas City, who have an immense
packing house here in connection with Next
can capital, and who buy from esq, 900 to
&lOo, 600 worth Of Mexican exchange every
week. The profits on exchange here are inn
mense and the credit system Of Mexico ought
to develop great banking business.
BANKING IN ITS INFANCY.
Banking ia in the first days Of its infancy in
Mexico. The insecurity Of the country In the
days Of the revolutions and until about twelve
years ago was such that the people buried their
money instead Of depositing it, and thore are
today millions upon millions Of dollars
in the hands. Of the rich haciendados.
which are buried in the ground
or hidden away under the walls Of
their homes. These men have for years been
what interest means and they soil their crops
and work their mines year after year and pile
away the surplus. 1t il tho same with many Of
the poorer classes. Some of these are richer
than they. look, and in the coffee dis
tricts hear Of men dying who we're
supposed to have nothing. and from
$50, 900 to s10o. 900 discovered about their mud
huts. This represented the sccumulations OF
years, and the secret Of its existence was COM
inundated from father to son. Every old
can merchants and drummers tell me that APP
penrances are very deceitful here and that you
cant tell how rich one of these rough-looking
old farmers is by his clothes.
BUSINESS DONE ON LONG TINE.
As to credits, all business in Mexico is done
on long time, and even where the people have
the cash lying away doing nothing they prefer
TO buy on from six to nine months or u year
credit. In the Wholesale business of the coun-
Try at least one-half OF the sales are made on
Time, ana one OF the reasons that American
trade is not more extensive here is
that our merchants will not give the
credit demanded. The merchants don Z seem to
object to high prices. but they do object to pay
ing cash. which is sometimes asked even before
ia he. <1,,r
Is just the reverse Of ours. We believe in quick
sales and small profits The Mexican prefers
slow sales and big profits. He is content to
wait and he gets his price. Mexican credit is,
l am told. very good. The people pay their
debts and business failures are very, very
few. This is so in both Mexico City and
throughout tho country. Mexico never had a
great financial panic, and SO tar no city in the
land has ever known what we call boom. The
people do not peculate, though they are invet-
crate gamblers. They live simply and they arc
as sharp business people along the lines that
they have been accustomed to as any people in
the world. There are no Jews in bushes.
in Mexico, aud this is said to be
80 because the Mexicans themselves are sharper
than the Jews in business AS far asI can learn
the Mexican is honest in his business methods
II he has fixed contract he will carry it out,
and if You do not attempt to take undue ad-
vantage Of him he will treat you fairly He be-
lieves that all business is done with the ewes
open and expects to take such advantage 40 the
law allows him.
NO STANDARD COMMERCIAL AGENCY.
was surprised to find that Mexica has no
standard commercial agency. The country
has a number OF big cities. Leon has 100 900.
Gaadalhara has 100000 aud San Louis Potosi
must have $4,000 people. ALI Of these towns
and dozens Of others are centers Of
trade. Still you cannot go into Mexico
CITY, which a the Wholesale distributing
point. and ind the standing OF any merchant
in any one of them. The banks have their
large have no means OF obtaining such infor-
nation. Notwithstanding this the system Of
credit giving Is very general. and both whole
sale and retail dealers give it. A great many
goods are sold on installments and great deal
OF money ~ loaned on chattel mortgages
As to mortgages Oh real estate, these are
few and according to the laws Of the country
hard to realize upon. The titles to the prop
erty are often bad and the expense of drawing up
the papers with the heavy stamp duties is great
In the case OF chattel mortgages the property
usually goes into the hands of the creditor un-
til the debt Is paid. For this reason many OF
the old families have u great deal of wealth
in their family jewels. These are easily
concealed III care vi u revolution and they
are always available for loans. At the time OF
Patti singing in Mexico Quantities OF these
jewels appeared that had not been seen for
years. Inc young ladies of the swell families
then came out i'll all their glory, and many a
diamond necklace was taken from the vaults of
the Monte de Piedad to glorify its owner and
the occasion.
IMPORTS FROM THE UNITED STATES
About one-half Of the imports Of Mexico
come from the United States, but 95 per cent
of these are handled by foreigners and not by
Americans. The bulk of the foreign importing
is done by the French the English and the
Germans, and SO far the Americans have not
gotten hold on The business Of Mexico. The
fact that tho American Mexican trade
amounts to about S50,030,0 q year and
that only per cent OF this ia handled by our
citizens shows this conclusively. There is a
prejudice here agains. American goods, and
the English and German merchants foster this
prejudice and run down American goods when
ever they can. They are very jealous of us and
they are banded together against u.s. Ameri-
can merchants should handle their goods
as far rs possible through Americans,
and not through Foreigners. They should
send their own agents wherever posi-.
bic to Mexico and should study the markets
and the people. With the proper care in pack
ing and in selling there is an immense field
here for almost every kind Of product We make.
but the trade will have to be pushed. Goods
should be advertised and prices regulated on a
credit basis and not on cash bnsis. The Next
cans will demand the credit at any rate and
they will pay the prices. At present the chief
and only things In which wo have the lead il
In coal oil and machinery. The Standard
OH Company and the White and Singer sewing
machines you lind all over Mexico and YOU will
see Aultman and Taylor threshing machines