The Roanoke daily times. (Roanoke, Va.) 1895-1897, 1896-05-22
THE ROANOKE TIMES FRIDAY. MAY %. 1896.
SILVER IN MEXICO.
A Gentleman Who Has Lived In the Coun-
try 10 Yeers Relates What He Knows.


try 10 Years Relates What He Knows.
Representative Newlands of Nevada
is endeavoring to have the ways and
means committee inquire what effect
the difference of exchange between
gold standard and silver standard coun-
tries has on the agricultural and manu-
featuring industries of the United
States and report by bill or otherwise
In this connection he requested Mr.
Alexander r. Shepherd, who has lived
in Mexico since 1880, to give his views
on the economic conditions of that
country as he found them while its
financial policy rested upon silver
basis Today he received the following
reply:
II have been n resident of Mexico
since 1880. When / first went there,
the ratio between silver and gold was
1917 to l. The first exchange bought
was Mt the rate Of 10 per cent in coin
silver ON n New York draft. Since
then, owing to the characterization of
silver, many changes have occurred in
the rate of exchange. During the famine
which existed the whole period from
1889 to 1898, when two-thirds Of all
the grain used for food in Mexico was
brought from the United States, the rates
of exchange ranged from 60 to 95 per
cent, and at times went as high as 100
per cent Notwithstanding this Mexico
met all her obligations, paid all her in
terest and suffered less than any other
country.
1.-The present condition of the silver
market is leading the Mexican people
to do their own manufacturing. AS an
instance of this might cite chihuahua
as an example. An iron foundry and
machine shop was established there
some time ago with $50, 600 capital for
the purpose Of manufacturing the min
ing and other machinery for which there
was q large and growing demand in
that vicinity, and which was formerly
supplied by the United States The sue
cess of this venture may be realized
when it is known that the capital stock
was increased to $500, 600, and that the
company secured u contract recently for
large amount of machinery in compe-
tition with large concerns in this coun-
try. Cheap clothing, all of which was
formerly purchased in the United
States and Europe, is now manufactured
in Mexico. AT chihuahua n canning
establishment, with q capital of ST.
900, 600, is now being organized for
the purpose of preserving meats and
fruit, and large brewery with a CAPT
tai of 5000, 600 is being put in operation.
Numerous other enterprises have
been established and are in contempla-
ton. In the northwestern part of Mexi-
N vail r>An H. ~
next year running from Ell Paso to
point south of Corralitos, distance of
200 miles, opening up country rich in
mines and agricultural resources. The
50, 600, 900 capital for the undertaking
has been furnished by New York par
ties.
Another instance may be recited
showing the wonderful progress of
northwest Mexico. When the Mexican
Central railroad was first opened, it was
thought the northern part Of it would
be unremunerative The opening of
mines and the development of agricul-
ture along this portion, however, has
made 1t one of the most profitable sec
lions of the road
Shortly before my departure I was
conversing with a very intelligent Mex
lean banker. He declared that he want
cd the difference between silver and gold
to be maintained, as it enabled Mexicans
to keep their money i'll their own coun-
try. Other Mexican financiers with
whom L have talked hold the same
opinion.
There have been but two or three
bank failures since have resided there.
The Mexican banks are required to keep
one-third Of their circulation in silver
dollars i'll their vaults
Perhaps the best sign of the stability
of Mexico under silver policy may be
found in the fact that Mexican per
cent bonds stand ut 90 in London. -
Washington Correspondent