The Neihart herald. [volume] (Neihart, Mont.) 1890-1901, 1896-08-29
V In

A Gentleman who Eas Liyed In the Coun
try 1G Years Relates What He Knows.
Representative Ncwlan,ls of Nevada
is ~endeavoring to have The ways and
means committee inquire what effect
the difference of exchange between
gold standard and silver standard coull-
tries has on the agricultural and manu-
featuring industries of tho United
States ANA report by bill or otherwise.
In this connection he requested Mr..
Alexander Il. Shepherd, who has lived
in Mexico since 1880, TO give his views
OF the economic conditions of that
country as he found them while its
financial policy rested upon a silver
basis. To-day he received the following
reply:
Il have been Il resident of Mexico
since 1880. When / first went there,
the ratio between silver and gold was
1alh to 1. The first exchange I bought
was ut the rate of Is per cent i'll 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 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 90 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.
"Thc present condition of the silver
market is leading the Mexican people
to do their own manufacturing. AS an
instance Of this ] might cite chihuahua
III 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 IL 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 q 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 II canning
establishment, with a capital of ST.
800, 600. is now being organized for
the purpose Of preserving meats and
fruit, and a large brewery with IA CAPT
tai Of $500, 900 is being put in operation.
GN,,n,,,,, l.1,o. z-4... t-.z
been established and are in contompla-
ton. In the northwestern part Of Mexi-
60 Il railroad viii be built within the
next year running from Ell PasO to a
point south Of COIralitoe, Il distance of
$50 miles, opening up a country rich in
mines and agricultural resources. The
So, coo, eco capital for the undertaking
has been furnished by New York par
ties.
'An0th"r instance may be Tecited
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 unremuncrativc. The opening of
mines and the development of agricul-
ture along this potion, however, has
made it II of the most profitable sec
tions Of the road.
"Shortly before my departure / was
conversing with Il very Intelligent Mex
lean banker. He declared that he want
I'd the difference between silver and gold
to be maintained, aS ii enabled Mexicans
to keep their money in their WI coun-
try. Other Mexican tinancicrs with
whom | have talked hold the same
opinion.
"Thcre have been but two or three
bank failures since | have resided there.
The Mexican banks are required to keep
me-third Of their circulation in silver
dollars i'll their vaults.
perhaps the best sign of the stability
of Mexico under Il silver policy may be
found i'll the fact that Mexican 3 per
cent bonds stand at 93 in London. -
Washington Correspondent.