The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1896-05-06
CAUSE or MExlco's PROSPERITY
Gov. Shepherd Thinks 1t Due to Free
Coinage of Silver.

Coinage of Silver.
Washington, May -(SpeciaD
Representative Newlands recently
| wrote to Ex-Governor Shepherd re-
/ questing his views upon the economic
/ condition of Mexico, and enclosed a
| resolution which Mr.. Newlands has be-
| fore the Ways and Means committee OF
| the House, directing that committee
ito inquire what effect the differences
| of exchange between gold standard
and silver standard countries has upon
the agricultural and manufacturing
Industries of the United States, and
report by bill or otherwise"
Mr. Newlands received the following
from Governor Shepherd, and the let
ter will be put before the committee
| of Ways and Means:
MY Dear Mr. NewIands: In response
to your request to give you view of
| the economic conditions of Mexico, as
/ have found them, while its financial
policy has rested on silver basis,
beg leave to say that it will give me
great pleasure to comply with it.
Il have been resident of Mexico
since 1880. When ] first went there
the ratio between silver and gold was
1872 to 1. The first exchange | bought
was at the rate of Is per cent. in coin
silver on a New York draft. Since
then, owing to the decentralization of
silver, many changes have occurred in
the rate Of exchange. During the
famine which existed for the whole pc
Rod from 1899 to 1893, when two-thirds
of all the grain used for food in Mexico
was bought from the United States,
the ratio of exchange ranged from 90
to 95 per cent. and at all times went
as high as 100.
Notwithstanding this, Mexico met
ali her obligations, paid all her inter-
est, and suffered less than any other
country. The present condition OF
the silver market is leading the people
of Mexico to do their own manufac-
turing.
"As an instance of this / may cite
Chihauhau as an example. An iron
foundry and machine shop was estab-
lished there some time ago with 100000
capital for the purpose of manufacture
ing the mining and other machinery
FOR which there was a large and grow
ing demand in that vicinity, and which
was formerly supplied by the United
States. The success of this venture
may be realized when it is known that
| the capital stock was increased to
| $500, 900, and that the company secured
| a contract recently for a large amount
| of machinery in competition with the
| firm of Frazier a. Chalmers and other
/ large concerns in this country. Cheap
/ clothing, which was formerly pur-
/ chased in the United States and Eu-
/ rope, is now manufactured in Mexico,
/ Al Chihauhau canning establishment,
| with a capital of 81 100000 is now being
| organized for the purpose of presery-
| ing meats and fruits, and a brewery
| with a capital of 100000 is being put
ia operation A wooden factory, with
| $500, 900 capital, was started and was
| enlarged last season to meet the in.
/ creased demands upon it. Shelters al
Chihauhau now treat the Mexican ores
i that were formerly sent across the Dor
der at heavy expense NUMEROUS othel
enterprises have been established anC
are in contemplation, all having tAs
effect Of giving remuneratiye employ
ment TO Mexican artisans and laborers
and, what is equally important, serv
ing to keep Mexican money in Mexico
for the fruit Of all these forms of in
dustry represents the life necessities
for which Mexico has heretofore beer
dependent on this country and Eu
rope.
s.The conditions in Chihauhau are
truer of the more advanced portions Of
Mexico, and the advancement is steady
and remarkable throughout. I'm the
northwestern part of Mexico a railroad
will be built within the next year, run
ming from El Paso TO point south o.
Corralitas, distance of $50 miles, open
ing up mines and agricultural resour
ces. The S5,000,000 capital for the un
dertakimg has been subscribed by New
York parties.
"The conditions of the people have
improved correlatiyely with the devel
opment OF the country. The distric'
Of FL Fuerte, which furnishes the par
of the mountains in which mines are
located, has doubled in poulation in
the past fifteen years, and its product
i've capacity correspondingly increas
ed. Formerly the peon system Of labol
which pervaded all Mexico, was thu
rule in FL Fuerte. Now the scarcity
of worlnen is so great that almost
everything is produced on shares, anc
it is almost impossible to raise a croT
unless the wor1men are interested II
it.
another instance may be recitei
showing the wonderful progress d
northwest Mexico. When the Mexican
Central railroad was first opened, it was
thought that the northern part of il
would be unremunerative. The open
ing of mines and the development Oh
agriculture along this portion of the
road, however, have made it the most
| profitable section of the world.
shortly before my departure ! was
| conyersing with a very intelligent
Mexican banker He declared that he
wanted the difference between silver
and gold mainland, as it enabled the
Afexicans to keep their money in their
own country. Other Mexican finan-