The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1896-06-20
SILVER IN MEXICO.
A Gentleman Who Has Lived In the Coun
try Is Years Relates What He Knows.

A Gentleman Who Has Lived In the Coun
try IS Years Relates What He Knows.
Representative Newlands of Nevada
Is endeayoring 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. I
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 it's
financial policy rested upon a silver
basis. Today he received the following
reply:
Il have been a resident Of Mexico
since 1880. When / first went there,
the ratio between silver and gold was
15k TO 1. The first exchange l bought
was at the rate Of Is per cent in coin
silver on a New York draft. Since
then, owing to the demonstration Of
silver, many changes have occurred in
the rate of exchange. During the famine
which existed the whole period from
1889 to 1893, when two-thirds of all
the grain used for food in Mexico was
brought from the United States, the rates
Of exchange ranged from so 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.
"The present condition Of the silver
market is leading the Mexican people
to do their own manufacturing. As an
instance of this I might cite chihuahua
as an example. An iron foundry and
machine shop was established there
some time ago with $50, 900 capital for
the purpose of manufacturing the min
ing and other machinery for which there
was a 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 a contract recently for
a 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 a canning
establishment, with a capital of $1,-
500, 600, is now being organized for
the purpose of preserving meats and
fruit, and a large brewery with a capt.
tai of 5000, 900 is being put in operation.
Numerous other enterprises have
been established and are in contempla-
ton. In the northwestern part Of Mexi-
CO a railroad will be built within the
next year running from Ell Paso to a
point south Of Corralitos, a distance of
$50 miles, opening up a country rich in
mines and agricultural n The
So, 900, 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
ludIS ~ OIlG VI tIt IIIpSt pIOlltdDlt Nt-
tions of the road.
"Shortly before my departure I was
conversing with a very intelligent Mex
lean banker. He declared that he want
ed the difference between silver and gold
to be maintained, as it enabled Mexicans
to keep their money in their own coun-
try. Other Mexican financiers with
whom I have talked hold the same
opinion.
"There have been but two or three
bank failures since l have resided there.
The Mexican banks are required to keep
one-third Of their circulation in silver
dollars in their vaults.
"Perhaps the best sign of the stability
of Mexico under a silver policy may be
found i'll the fact hat Mexican 5 per
cent bonds stand at 93 in London. -
Washington Correspondent.