Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-07-26

out OF the territory where they are issued
ana the notes of the Bank of London ant
the National Bank issued by branch al
Chihuahua, for instance, are taken at dis
count anywhere else, and am told that the
main banks here take their own notes from
tnelr branch banks at q discount. This
seems strange, but money is made on every.
thing In Mexico, and it takes but small
ground for an extra charge.
Ihe National bank is Government in
stltutlon and at the same time private
bank. Itwas organized during the admin
lstratlon OF President Gonzales when there
was considerable corruption and when any
thing could be bought of the Government.
Inc result Is that the bank has number OF
privileges not accorded to other banks. 1t
Is supposed to belong largely to the Roths-
chllds and it is operated by foreign inter
ests The International Bank of Mexico is
run on the debenture principle. 1t issues
loans on mortgage and is bank Of deposit
An American Bank to Be Started.
In addition to these banks there are sew
eral private banks, the biggest of which are
Beneckie Bros. and Shirer & Co. These
are making great deal of money, They
loan on goods in transit and do a great deal
OF mercantile business. An American bank
Is shortly to be opened, which promises to
make itself one Of the leading monetary in
stltutions Of the city. This bank will do
business on American principles. 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 continued for a number of
months, as the other banks are said to re-
qulre In order that the privilege of leaving
their money may be granted It viii
be savings bank and will pay
3 per cent for time deposits. It will
have the right Of safety deposit and
the warehouse business and all of the priv
lleges granted to other banks, save that Of
issuing notes, and the Government will not
charge it stamp taxes for its business be-
tween its branches. 1t will put up a big
building and all the materials for this are to
come in free of duty, and there is no doubt
OF its success. As the only savings bank of
any Importance in the country, and the only
one in Mexico City, it cannot fail to make
big profits, and it will be run and patrons
lied by men of large means. One of the in
corporators is the firm Of Morris 8 Butte,
of Kansas City, who have an immense pack
ing house here, in connection with Mexican
capital, and who buy from $40, 900 to $780,
900 worth of Mexican exchange every week.
The profits on exchange here are immense
and the credit system Of Mexico ought to
develop great banking business.
People Hide Their Money.
There are to-day millions upon millions
of dollars in the hands of the rich Hacien-
dados which are buried in the ground or
hidden away under the walls of their homes.
These men have for years been making
money and boarding They don't know
what interest means, and they sell their
crops and work their mines year after year
and pile away the surplus. 1t is the same
with many of the poorer classes. Some of
these are richer than they look, and in the
coffee districts I hear of men dying who
were supposed to have nothing and from
$4,000 to 100000 were discovered about
their huts.
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 years credit. In the
wholesale business of the country at least
one-half of the sales is made on time, and
one Of the reasons that American trade is
not more extensive here is that our
merchants will not give the credit de-
manded The merchants don't seem to
object to high prices, but they do
Object to Paying Cash,
which is sometimes asked, even before they
see the goods, and their motto in business
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. Mexi-
can credit is, am told, very good. The
people pay their debts, and business failures
are very few. Mexico never has great
financial panic, and SO far no city in the
land has ever known what we call BOOM
The people do not speculate, though they
are inveterate gamblers They live simply,
and they are as sharp business people along
the lines that they have been accustomed to
as any people in the world
There are no Hebrews In business in
Mexico and this is said to be so because the
Me1icans themselves are sharper than the
Hebrews In business. AS far as can learn
the Mexican is honest in his business
If he has @ fixed contract he will
carry it out, and if you do not attempt to
take undue advantage of him he will treat
you fairly. He believes that all business is
done with the eyes open and expects to
take such advantage as the law allows him.
was surprised to find that Mexico has no
such agency as Dunn or Bradstreets. The
banks have their own private correspond
ofeobtaining such information. Notwith- |
standing this the system of credit giving is |
very general and both Wholesale and retail |
dealers give it.
Diamonds for PATHS Business
A great many goods are sold on install
nents and great deal of money is loaned |
On chatteI mortgages. AS to mortgages on |
real estate, these are few, and according |
20 the laws of the country, hard to realize |
lpon. The titles to the property 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
,reditor until the debt is paid. For this
'eason many of the old families have
,reat deal of wealth in their family jewels.
These ere easily concealed in case of revo-
ution, and they are always available for
oans. At the time of PATHS singing in
Mexico, quantities of these jewels ap-
'eared that had not been seen for years.
About one-half of the imports Of Mexico
ent of these are handled by foreigners, and
lot by Americans. The bulk Of the for
ign importing is done by the French, the
english and the Germans, and so far the
Americans have not gotten hold on the
usiness of Mexico. There is prejudice
ere against American goods, and the En-
lish and German merchants foster this
rejudice and run down American goods
'henever they can. They are very jealous
f us and they are banded together
gainst u.s.
Rules for Americans to Follow.
American merchants should handle their
oods as far as possible through Americans
nd not through foreigners. They should
end their own agents wherever possible to
fexico and should study the markets and
ne people. With the proper care in pack
O en1 eo1I,p,, 4bar &c HaI1 |