The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1896-04-28
PROSPERITY OF MEXICO
Effects Of q Silver Standard Of
Currency.
An INDIE PENDENT COUNTRY
by the Demonstration Of Silver Mexican
People Have Been Induced to DO
Their Own Manufacturing Money
and Industries Kept ut Home.

oring to have the ways and means
committee inquire what effect the dill
ference of exchange between gold
standard and silver standard countries
has upon the agricultural and manu-
featuring industries of the United
States and report by bill or otherwise.
In this connection he requested Mr..
Alex X. Shepherd, who has lived in
Mexico since $780, to give his veiews on
the economic conditions of that coun-
try as he found them while its tinan-
cial .policy rested upon silver basis.
Today he received the following reply:
II have been resident of Mexico
since 1880 When / first went there the
ratio between silver and gold was 15ia
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, ow-
ing 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
1895, when two-thirds Of all the grain
used FOR food In Mexico was bought
from the nited States, the rates Of eX-
change ranged from 60 to % per cent
and at times went as high as 100. Not
withstanding this, Mexico met all her
obligations. paid all her interest and
suffered less than any other country.
ENCOURAGE MANUFACTURING.
THE present condition of the silver
market is leading the Mexican people
to doing their own manufacturing. AS
an instance of this. l may cite Chihau-
hua as an example. An iron foundry
and machine shop was established there
some time ago with $60,00O 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 former
ly 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, 200 and that the
company secured a contract recently
for a large amount of machinery in
competition with large concerns In this
country. Cheap clothing. all of which
was formerly purchased I'm the United
States and Europe Is now manufac-
tured In Mexico. At Chihuahua a can
ming establishment, with capital of
$l,5O0,O00. Is now being organized for
the purpose of preserving meats and
! fruit and large brewery, with capt.
tai of 100000, is being put in operation.
A woolen factory, with 100000 capital
was started and was enlarged last sea-
son to meet the Increased demands upon
1t. and smelters at Chihuahua now treat
/ the Mexican ores that were formerly
sent across the border at heavy ex-
pense.
ENTERPRISES ESTABLISHED.
Numerous other enterprises have
been established and are in contempla-
|. ton. all having the effect of giving re-
munerative employment to Mexican
artisans and labOrers, and, what is
equally important, serving to keep
Mexican money in Mexico. for the fruit
of all these forms of industry repre-
sent the necessities for which Mexico
has hitherto been dependent on this
country and Europe. The conditions in
Chihuahua are truer of the more ad-
vanced portions of Mexico and the de-
, velopment Is steady and remarkable
throughout. In the northwest part of
Mexico a railroad will be built within
the next year, running from El Paso
to point south of COrralitas, a dis
tance of $50 miles, opening up a coun-
! try rich in mines and agricultural re-
sources. The $4,000 capital for the
/ undertaking has been furnished by
| New York parties.
THE conditions Of the people have
improved co-relatively with the devel-
opment of the country. The district of
El Puerte which furnishes the part of
the mountains in which mines are To-
Gated. has doubled in population in the
past fifteen years, and its productive
capacity correspondingly increased
Formerly the Peon system of labor
which prevaded all Mexico was the rule
In FL Puerte. Now the scarcity of
workmen is so great that almost every
thing is produced on shares and 1t is
almost impossible to raise a crop unless
the workmen are interested in it.
INSTANCE OF PROGRESS.
Another instance may be recited
showing the wonderful progress OF
northwest Mexico. When the Mexican
Central railroad was first opened it was
thought that she northern part of /,
would be unremunerative The open.
ing nf mines- and the da.-elhe h 81
agriculture along this portion. however
has made II one of the most profitable
sections of the road.
Shortly before my departure | was
conversing with a very Intelligent Mex.
lean banker He declared that he want.
ed the difference between silver ant
gold to be maintained as it enabled tn,
MeXicans to keep their money in theil
own country. Other Mexicans finan
ciers with whom | have talked hold tht
same views.
| 'Inere nave Deen Dut TWO or three
bank failures since l have resided there
The Mexican banks are required to kee,
One-third of their circulation in slve
dollars in their vaults.
'"The system in Mexico allows tn,
miner to send his silver to the govern
ment repositories and receive silve
dollars in retlRn for 1t in any part o
the country, where there Is an ASA,
office, the government tax and cost be
ing about Az per cent.
Perhaps the best sign of the stabii
ity of Mexico under a silver policy ma,
be found In the fact that Mexican fiv
per cent. bonds stand at 90 in London.