Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-04-29
Ex-Gov. Shepherd on the Economic
Conditions Of the Republic.
His LETTER TO MR.. NEWLANDO
Result of His Observations During
a Long Residence There.
NEW INDUSTRIES STARTED


to Ex-Governor Shepherd requesting his
views upon the economic conditions of
Mexico, and Enclosed resolution which Mr..
NewlandS has before the ways and means
committee Of the House, directing that COM
mlttee Ito Inquire what effect the differ
ence of exchange between gold-standard and
silver-standard countries has upon the agri-
cultural and manufacturing industries of
the United States, and report by bill or
otherwise"
Mr.. Newlands received the following from
Governor Shepherd, and the letter will be
put before the committee of ways and
means:
My Dear Mr.. Newlands: In response to
your request TO give you view of the eco
homie conditions of Mexico. / have found
them, while its financial policy has rested
on a silver basis, / beg leave to say that II
wiz give me great pleasure to comply
with it.
Il have been a resident of Mexico since
lSSo. When l first went there the ratio be-
tween silver and gold was ILL., to / The
nrst exchange bought was at the rate of
L. per cent in coin silver New York
draIt. since then, owing to the demoneti-
zatlon OF silver, many changes have occur
red In the rate Of exchange During the
famine, which existed the whole period from
1888 10 1873. when two-thirds of all the grain
used Tor food in Mexico was bought from
the United States, the ratio of exchange
ranged from 90 TO 80 per cent, and at time1
went as high as 100.
Notwithstanding this. Mexico met all her
ophgaCons, paid all her interest, and suf-
Tered 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 / NAV cite Cb,br
&hua as an example. An iron foundry and
machine shop was established there some
time ago with $4,000 capital for the pur-
pose OF manufacturing the mining and 9th
TT which her 10,
ana growing demand in that vicinity and
Which was formerly supplied by the United
states The success of this venture may be
realized when IL is known that the capiraI
STOCK was increased to S5H,DtD, and that
the company secured contract recently
LOT large amount of machinery in compe-
utlCn with the firm of Frazier & Chalmers
ana other large concerns in this country
Cheap clothing, all of which was formerly
purchased in the United States and Europe
Is now manufactured in Mexico. AT Chihu-
ahua canning establishment, with a cap
1tal OF Sl..bp,bh, is now being organ
lied for the purpose Of preserving meats
and fruits. and a large brewery with a
Capital of S2H.oH, is being put in operation
A wooden factory, with s2A.000 capital. was
started and was enlarged last season to
meet the increased dems nds upon it. Smelt-
ers at chihuahua now treat the Mexican
ores that were formerly sent across the
border at heavy expense. Numerous other
enterprises have been established and are in
contemplation, all having the effect of Civ
ing remUnerative employment to Mexican
artisans and laborers, and, what is equally
as important, serving to keep Mexican mon
ey in Mexico. for the fruit of all these
forms of industry represents the life neces-
sites for which Mexico has hitherto been
dependent on this country and Europe
THE conditions in Chihuahua are truer
OF the more advanced portions Of Mexico,
and the development is steady ard remark
able throughout. In the northwest part of
Mexico a railroad will he built within the
next year. running from FL Paso to a point
south of Corralitas. distance of 2J0 miles
opening up country rich in mines and ag-
ricultural resources. The S5.oOoo0 capital
for the Undertaking has been subscribed by
New York parties.
The. conditions of the people have I'M
proved correlatjyely with the development
of the country. The district Of FL Fuerte
which furnishes the part of the mountains
in which mines ara located. has doubled in
populations in the past fifteen years. and
its productive capacity correspondingly in
creased. Formerly, the peon system of
labor, which pervaded all Mexico. was the
rule in FL Fuerte. Now the scarcity of
workmen is so great that almost everything
Is produced on shares, and il is almost i'm
possible to raise a crop unless the work
men are interested in It.
another Instance may he recited show
ing the wonderful progress of northwest
Mexico. When the Mexican Central rail-
road was first opened ii was thought that
the northern part of it would be unre-
munerative. The opening of mines and the
ton. however has made it one of the most
profitable sections of the world.
Shortly before my departure / was con-
versing with very intelligent Mexican
banker. He declared that he wanted the
difference betw Keen silver and gold to be
maintained, as it enabled the Mexicans to
keep their money in their own country.
Other Mexican financiers with whom have
talked hold the same views. There have
been but two three bank failures in
Mexico since I have resided there. The
Mexican banks are required TO keep one
third of their circulation in silver dollars
In their vaults. The system in Mexico al
lows the miner to send his silver to the
government repositories and receive sill
YER dollars in return for il in any part of
the country where there is assay office.
the government tax and cost being about
AZ .ner cent.
perhaps the best sign of the stability
of Mexico under silver policy may he
found in the fact that Mexican : per cent
bonds stand at a2 in London.
II trust this necessarily hurried review
will give you an idea of the conditions in
Mexico. and regret that my early departure
prevents a more complete and detailed
statement. Sincerely yours
"ALEN. r. SHEPHERD"