Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-07-06
TRADE WITH MEXICO.
Interesting Report Of Special
Agent chas. N. Pepper.
SUGGESTIONS FOR SHIPPERS
Need Of Good Travelling Men Who
Speak Spanish.
GREAT DOMEsTIO MARKET
Thinks It VIII Be Long Time Be-
fore tho Peon Becomes an
Artisan.
GREAT DOMESTIC MARKET

Trade conditions in Mexico are described
Ia q report made to the Department OF
Commerce and Labor by Charles M. Pep
per. the special agent who has been inves-
tigating the subject for several months
past.
In a letter to the Secretary submitting
his report Mr.. Pepper declares that the
nature OF the Mexican market for Ameri-
can products Is all embracing. He says
that the American people share the salts
faction felt over the financial stability
which now exists in that republic and
states that investments Of United States
capital are overlooking from the railroads
and the mining industry into other lines.
The direct returns on the capital which
has gone into railways and similar large
enterprises can hereafter be calculated
with certainty because OF the fixed valua-
ton given to the currency of the country.
The indirect returns from the sale OF
goods that are the product and manufact-
ure OF the United States are not so easily
determined, but they can be made greater.
The exports of domestic merchandise
from the United States to Mexico during
the calendar year 1905 amounted to $50
100000, an increase Of 100000 over the
from all parts of the world for the same
twelve months were approximately 500, 000,
600. This would give the United States IS
per cent to 81 per cent of the total Mr..
Pepper says that in view Of the large
amount of American capital invested In
Mexico, which is placed at s850.000.000, and
of the advantage resulting from geograph
ical proximity and means of communication
1t should be rs per cent. He undertakes to
point out how this proportion may be
cured.
New Mexican Tariff.
The report states that while exports from
the United States to Mexico have been
growing rapidly exports from Mexico to
this country. chiefly mineral products, have
grown even more rapidly. In ten years the
increase from the United States to Mexico
has been 1913 per cent; from Mexico to the
United States. 155 per cent. During 1905
Mexico sent to the United States $4,000
600 of merchandise exports, SO that at the
beginning of the present year an equili-
brium existed, but the balance of trade Is
tipping to Mexico. This Is cited as an evil
dence of the increased buying capacity of
that country, and this enlarged purchasing
power Is urged as reason why American
manufacturers and exporters should press
for control of the Mexican markets.
The steps by which silver coinage was
suspended and financial stability secured
are briefly described along with the meas
ures for maintaining parity of silver cur
Fency with the R0lQ currency OF the united
States. The new condition which arose
when the rise in silver throughout the
world made the Mexican silver dollar worth
fractionally more than that provided for in
the monetary laws is discussed and the
opinion Is expressed that no serious dis
turbance of international exchange will fol-
low from this circumstance. The ground
for this belief Is that the Mexican govern
ment has ample credit and ample means
for enlargtng IT'S gold reserve having begun
the year with a surplus and with increasing
revenues both from internal sources and
from customs duties.
In describing the protective principle of
the new Mexican tariff. which went into
effect In September. 1905, Mr.. Pepper analy-
yes the native Industries. While some of
these, such as the cotton mills have been
very successful and while the enterprises
which are based on water power through
the transmission of electrical energy have
an assured future, nevertheless the con-
clusion Is drawn that Mexico will be many
years in reaching the point where her home
industries will measurably supply the home
demand. The lack of general distribution
of fuel and the difficulty with which the
peon population is evolved into artisans, Is
one reason for the slow growth of native
manufacturing. In consequences, importa-
tions of goods from abroad must continue
very large. In the making OF iron and
steel Notwithstanding the fine plants erect
ed and the aid extended by the government
there has been little progress toward meet
ine the needs of the market. The sale of
iron and steel products Is likely to be great
" enlarged by the era of renewed railway
a period of inactivity The market will be
for not only rails and locomotives, but for
car equipment and rolling stock generally
Railroads Are Growing.
A review Is given Of the more important
railroad projects now under way In their
relation to the Industrial development of
the country and to the importation of ma
terial
Through railway connection from the Rio
Grande to the frontier OF Guatemala Is said
to be assured within twelve or fifteen
months, while there is a possibility of fu-
ture gulf lines from the Texas border to
Yucatan and the Mexican Central is en-.
tering upon the construction OF short line
from the port OF Tampico to the City of
Mexico. Much Importance Is given to the
extension of the Southern Pacific system
now under way from its present terminus
at Guaymas on the Gulf of California In
Sonora along the Pacific coast to the city
OF GuadalaJara. Confidence Is expressed
that ultimately this will mean a direct
through line from San Francisco to Mex
leo City.
Progress on interoceanic lines. or from
the Pacific to the Gulf Of Mexico, Mr.. Pep
per says. Is not so marked, yet the Tehuan-
tepec national railway has been rebuilt and
the great harbor works at Salina Cruz and
Coatzacoalcos are nearly completed The
opinion Is advanced that this line. while
prospective competitor with the Panama
canal, Is already competitor OF the trans
continental lines of the United States
Considerable space is given In the report
to the nature of inquiries for trade which
come from the United States and which are
said to be SO numerous as to overwheim
the consuls and importers Causes of the
failure to secure more Of the commerce are
explained In detail. They are the indif-
ference to customs regulations, bad pack
Ing, the refusal to give the credits which
are demanded by Mexican houses and the
lack of deliberate and thorough commercial
drumming by travelling agents who under
stand the Spanish language and who will
adapt themselves to the peculiarities of the
native trade. Directions are given for
overcoming the deficiencies In all these
Anatters. Respecting the need of deliberate
commercial drumming. the observation is
made that the Mexican business man win
not look at samples on the run or give or
ders at gallop.
As an illustration of what may be accom-
blished Mr.. Pepper describes the growth in
imports OF boots and shoes from the United
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