The Birmingham age-herald., 1906-03-06
Americans However Must Study
 Needs of Country
NEGOTIATIONS ENORMOUS
Native Peons Are Hard to Educate In Manufacturing Trades and Goods Must Be Bought In For
 eign Countries.

Washington, March 5.AA comprehensive report on trade conditions in Mexico has
 just been submitted to the department
 of commerce and labor by Charles M. Pepper special agent who has devoted several months to the study of the sub
 ject.
 In q letter to Secretary Metcalf trans
 hitting the report, MT. Pepper declares
 that the nature of the Mexican market for American products is all embracing.
 He refers to the present financial stability
 of Mexico. and says that investments of United States capital are overhowng
 from the railroads and the mining in-
 dustry into otber lines, and in this con-
 necton the statement is made that the
 direct returns on the capital which has gone into railways and similar large en-
 terprises can hereafter be calculated with certainty because of the fixed valuation
 given to the currency of the country.
 The indirect returns from the sale of goods that are the product and manufae- ture of the United States. he maintains. however, are not so easily determined, but
 he says they can be made greater.
 
 exports to Mexico equaled 57 per cent of
 the total, but he expresses the opinion that they should be at least 70 per cent. MT. Pepper says that as regards exports from Mexico to the United States, they have been growing rapidly, having in-
 creased in ten years 155 per cent.
 In describing the protective principle of the new Mexican tariff, which went into effect in September, 1905. Mir. Pepper
 analyses 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 elee- trcal energy have an assured future, nov eretheless 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 distribution of fuel and the difficulty with which the peon population is evolved into artisans Is described as one reason for the slow growth of native manufacturing. In con- sequence importations of goods from
 abroad must continue very large. In | the making of iron and steel. notwith- 1 standing the fine plants erected and the ! aid extended by the government, but little l progress is. noticed toward meeting the
 needs of the market
 Americans Are Too indifferent. After discussing the railroad projects of 1 Mexico and the progress being made on 1 interoeeanic lines, MT. Pepper devotes
 considerable space to the nature of in
 quirles for trade which come from the United States and which are said to be so numerous as to overwhelm the con- sus and importers Causes of the fal- ure to secure more of the commerce are explained in detail. According to MT. Pepper they are the indifference to GUS
 toms regulations, bad packing. the re- fusal to give the credits which are de- manded by Mexican houses and the lack of deliberate and thorough commercial drumming by travelling agents who un- 1 derstand the Spanish language and who will adapt themselves to the peculiaritles of the native trade. Directions are given for overcoming deficiencies in all these matters. Respecting the need of delib- crate commercial drumming. the observa- ton is made that the Mexican business
 man will not look al samples on the run
 or gallop. Particular attention is called to the fact that Mexican tariff Is levied by weight according to metric system and
 the duties are specific. The report says 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 it. The steady immigration to Mexico, MT. 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 the trustworthy information may
 be obtained are indicated. He declares hat
 culture arc said to be inviting fields in
 Mexico for American settlers. but he
 sounds note of warning against the
 shares of plantation companies which, he
 says, are exploited only for the sake of selling stock