Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-06
MARKETS IN MEXICO
HOW AMERICAN EXPORTERS
MAY INCREASE THEIR TRADE.
Comprehensive Report ON Conditions
by Charles n. Pepper to the De-
partment of Commerce.

by Charles NJ. Pepper special agent, who
has devoted several months to a study OF
| the subject. In letter to Secretary Met
/ calf. transmitting the report Mr. Pepper
declares that the nature of the Mexican
market for American products is all-en,-
bractng. He refers to the present financial
| stability of Mexico, and says that invest
ments of United States capital are over
| flowing from the railroads and the mining
industry into other lines. and in this con-
nection the statement is made that the dt-
| rect returns on the capital which has gone
i into railways and similar large enterprises
can hereafter be calculated with certainty
because of the fixed valuation given to the
| currency of the country. The indirect re-
turns from the sale OF goods that are the
product and manufacture OF the United
| States. he maintains. however, are not so
easily determined. but he says they can be
made greater.
During the year 1905 United States ex-
ports to Mexico equaIed 81 per cent of the
total. but he expresses the opinion that
they should be at least IS per cent. Mr..
Pepper says that as regards exports from
Mexico to the United States they have been
growing rapidly, having increased in ten
years 1oS per cent
Importations Must Continue
In describing the protective principle of
the new Mexican tariff which went into
effect in September. 1903. Mr.. Pepper an
alyzes the native industries. While some
OF these. such as the cotton mills, have
been very successful, and while the enter
prises which are based on water power
through the transmission of electrical en-
ergy have an assured future, nevertheless
the conclusion 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 distri-
invy
the peon population is evolved into artisans
IS described as one reason for the slow
growth OF native manufacturing. In con-
sequence Importation of goods from abroad
must continue very large. In the making
of iron and STEEL notwithstanding the fine
PLANTS erected and the aid extended by the
government, there has been little progress
toward meeting the needs of the market
After discussing the various railway prof.
ects OF Mexico and the progress being made
on interoceanic lines Mr.. Pepper devotes
considerable space to the nature of in
qufrfes for trade which come from the
United States and which are said to be so
numerous as to overwhelm the consuls and
importers.
Hints to Exporters.
Causes of the failure to secure more of
the commerce areSexplained In detail Ac-
cording to Mr.. Pepper, they are: Indifference
to customs regulations, bad packing, the
refusal to give the credits which are de-
| manded 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
matters Respecting the need of deliberate
commercial drumming, the observa ton is
made that the Mexican business men will
not look at samples on the run or give or
ders at gallop.
Particular attention Is called to the fact
that the Mexican tariff is levied by weight,
according to the metric system, and that
the duties are specific. The report says
that there Is an unusually good field for
the sale of American furniture IN Mexico,
but that Indifference in regard to packing
and to complying with the customs regula-
tions up to this time has limited 1t.
The steady immigration to Mexico. Mr.
Pepper points out will have important
commercial advantages for the United
States. Suggestions are made regarding
the precautions which should be taken by
land buyers, and the sources from which
trustworthy information may be obtained
are indicated. He declares that both trop-
ical and temperate agriculture are said to
be inviting fields in Mexico for American
settlers, but he sounds note of warning
against the shares of plantation compa-
MES which he says, are exploited only for
the sake of selling stock
Financial Stability Of the Republic.
In closing his report. Mr.. Pepper says:
'.A review of the trade conditions in
Mexico shows that the financial stability
of the republic has been established beyond
all question. 1t indicates further inflow
of foreign capital with fresh mining de-
yelopment and renewed railroad building.
Activity in these two great industries alone
insures a period of prosperity for the In
habttants which will cause considerable In
creases In the purchases Of material abroad.
There Is also the gradual enlargement of
the agricultural resources which fnsures an
increase of purchasing power OF perma-
nent character.
while many native industries flourish
and while others growing slowly the
figures of imports themselves show that
for long time the country must be large
bryer abroad 1t is for this reason that l
have pointed out some of the cardinal con-
ditions in regard to the sale of foreign
goods-such conditions as relate to the
tariff schedule customs regulations, pack
ing. credits and commercial drumming.
Eft must be constantly kept in mind by
fine American manufacturers that their
European competitors are alive to all the
requirements of the Mexican trade as wei
as to its possibilities. But with an equally
Intelligent and enterprising spirit there Is