The San Francisco call., 1909-02-24

porations doing business in Mexico
should be organized under Mexican law.
In other words a corporation organ
lied in New Jersey or Arizona can not
buy and work a Mexican mine. The
opposition of all foreign interests was
immediate and outpoken. Corporation
managers knew the delays of Mexican
with officials. There is no escaping the
fact that foreign capital would gen.
orally shy at a Mexican corporation.
When Diaz, the wise politician who
never tries to go too fast in his de-
velopment of nationalism. saw what a
storm of opposition this theoretically
justifable act of jingofsm was raising
he acted as he did about the flag incl
dent, as he always does on such occa-
sions. He had the Objectionable fea-
ture withdrawn.
FOREIGN INTEREST
CHARGE HEAVY
Those who shout Mexico for the Mex
leans have to consider that once the
entering flood of capital is damned an
economic revolution is inevitable. 1t is
the new investments that balance Mex
ico's ledger, despite her immense ex-
port of silver. They are the secret of
her prosperity, of an overfiowing treas
ury with which she builds great public
works. for her wealth of agricultural
resources does not prevent her from tbe-
ing an importer of foodstuffs. Her an
nual trade of $4,000, 900, including
export of metals amounting TO from
$50, ,00e, edo to $50, 0e0, 900. gives her a
balance of about s10,000.000, or less
than half her national interest charges
abroad. while the interest sent abroad
on the foreign capital invested must
11a laaSt S75 0e0 0(l0 "A yeare
There you have the weak point in
Senor Lifnantours SYSTEM which looks
so strong because of his excess of re-
ceipts over expenditures. Let the silver
and gold keep on flowing out to return
the foreign principal and pay the in
terest charges while no new capital
flows in. and the, great finance min
lister will face a harder problem than
he has yet solved
In trying to do for his country what
the elder statesmen did for Japan in
bringing foreign civilization and teach
ers. Diaz counted with a different type
of people for his host. The Mexicans
themselves-wh fail to learn what the
Japanese were so eager to learn
make Mexico for the Mexicans impos-
sible. Her young men, who initiate
French manners, have failed to initiate
French civilization in its engineers,
promoters, mechanics, and thrifty,
trained industrialism. They go to the
technical schools and learn theory and
hesitate at the hard application that
practice requires. A Mexican boy OF
anv education who will apprentice him
self to learn railroading is an anomaly
CLASS FEELING
AGAINST BUSINESS
Among the better classes there is
Castilian contempt for business They
would rather be government clerks or
dependents on hacienda than mine
managers at $4,000 a year; which. be-
sides. requires harder work than they
like. If a Mexican sells his mine he
puts his money into land. His only
form of gambling is lottery tickets.
There is less stock speculation by Mex
leans in Mexico City than in many
American towns OF 10000 people.
The love of risk, of action for a
splendid stake. so characteristic of the
Japanese which leads the American.
the Britisher,. the Frenchman and the
German into Industrial undertakings. is
not in hin-at least, not yet. Mines
and railroads and banks and stores are
managed by foreigners because they
are best suited for the work Any
measure which retards foreign enter
..<St~ 81 sF.s,x.