The record-union., 1895-06-29

pendent of his action. Foreign creditors
accept the railways, with the multitude of
other interests which they have called
! into existence, as a sufficient guarantee
that their investments will be honestly
recognized.
Among the more general economic ef-
| fects of the building of railways in
! Mexico may be observed an increasing
disposition to establish and conduct pro-
| ductve enterprises with corporate capi-
/ tai. n conspicuous weakness of the
/ Spaniards in Spain, and Of their descend
ants IN spanish America, has been their
( inability to form and conduct success
/ fully industrial and commercial corpora
/ tions.
/ The extreme individualist who thinks
disastrous step was taken when the Jaw
! established the conditions, snd permitted
the existence Of business corporations,
will naturally find q national virtue in
the Discrimination TO organize, or to carry
on business by such corporations. AS
the question of the good or evil Of COM
mercial corporations is not under con-
sIderation, it is not necessary to contro-
vert this opinion. but simply 10 call at
tention to the fact that one may have
many virtues and still not make
great achievements on the athletic
held. II we may form a judgment from
the actual economic facts of our society,
the business corporation is the most 1eas-
IDLE and most effective means yet OK
teusIYely practiced for conducting great
| industrial enterprises; and the nation
that is not in q position 10 make use Of
this means, by reason Of its virtues or It's
vices, is not i'll position 10 compete sue
cesstully with its neighbOrs who are not
thus hampered.
IN both Spain and Mexico, therefore,
the large undertakings, which require
more capital than one man is likely 10 be
willing 10 invest in single venture.
have fallen mo the hands OF foreigners
WHO have not been opposed to the corpo-
rate form Of business management. IL
Spain French corporations own and
/ manage most OF the railways, while Eng
llsh corporations work mines and con-
/ troll other important interests; and IN
Mexico these two lines of business have
already absorbed large sums of English
and American capital under corporate
organization. The reluctance OF the
Mexicans to take advantage of this form
OF organization has made the way here
comparatively easy for foreign corpora
tiOns.
The reason Of this reluctance is not
found IN lack of knowledge, but i'll the
lack of confidence on the part of Mexi-
cans in one another. They do not believe
apparently that their fellow citizens are
as honest in business affairs as the mem
ber5 OF other nations. AS an evidence Of
this may be noticed their comparative
willingness to enter into commercial cor
pOrations in case a foreigner is to be at
the head Of it.
In this matter they appear to have more
confidence in foreigner, whom they do
not know. than in one of their own
nation, whom they do know. But this
must be regarded as q transitory state of
things. The railway corporations are
making the people of Mexico familiar
with this form OF investment, and since
their advent there have not been wanting
those who were willing to aid in organ
izing corporations for other purposes.
The missionary OF the modern indus
trial system is in the field; and through
his personal solicitations, and through
the force of the example of corporations
already organized, Mexico is destined to
be carried more ami more completely
into line with those nations that have at
present largely supplanted individual
industry by corporate industry. BY the
intimate connection which has been es-
tablished between this and the most ad-
yanced nations. the forces that have
operated to producei in them an industrial
revolution are working now with COM
parative freedom, and will bring about
similar revolution in Mexico.
BERNARD MOSES