El Paso herald. (El Paso, Tex.) 1901-1931, 1919-11-17
Admits Mexico
Dependent On
Foreign Money
Cabrera Sees No Reason
for Great Optimism or
Black Pessimism.

washington, D. C., Nov. 17.-Luis
Cabrera, secretary OF the Mexican
treasury, discussing the economic
conditions in Mexico in his annual
report to congress, details Of which
have reached washington through
official channels, declares that there
Is no reason for extraordinary op-
timism or for black pessimism." He
estimates the revenue for the year
.s1s at 18s.SS4.0o0 pesos. although
president Carranza, in MS message to
congress September ]. 1919. estimated
II at 162,o0o,000s basing his estimate
on the returns for the 10 months
from September, 1913, to June OF this
year The revenue for 1920 is esti-
mated at 167,oo00oo pesos,
Improvement Noted.
IN submitting this report to the
nouse Of deputies, secretary Cabrera
says that while the difficulties eL-
perienced by the federal treasury, due
70 causes wen known 70 all, are far
from having disappeared unnlistaDle
signs OF Improvement have been
noted ia many aspects Of the economic
conditions OF the nation and hence IN
the financial situation OF the federal
government he admits that - eLlco
was formerly and still Is dependent
conditions in all the socalled young
nations" Of the world which, be says,
have experienced the suspension Of
the influx OF capital from countries
economically stronger" and are eI-
erting vigorous efforts 70 be self
supporting"
Effects OF both OF these influences
have been felt in Mexico, he says, and
VIII continue 70 be felt, in part az
least, during 1890 The report con-
fesses that -our economic life was
paseu 1ormerly On continuous
stream Of capital from abroad. this
resource not being open 70 Us at
present except IN a very limited way.
Imports show Increase.
seeretaIy cabrera says the imports
for the first four months Of the year
amounted 10 5000 600 pesos. as
against 54,000i000 in the correspond
ms period last year. The exports
show decrease from 122.23Q,0o0 pesos
from the first four months Of 1918
20 lQ6.5Qooo0 for the corresponding
period this year. Mexican experts
point out that this means that the
balance o. trade was SO favorable 20
Mexico OF the crying need OF the
world for raw products which 70 a
reconstruction DAYS following the
war. but that Mexico Is unable 70
take advantage OF these conditions
because Of the serious situation within
her borders.
The report caused some disappolnt-
ment because 10 did not indicate what
steps VIII be taken 20 meet the cur
rency situation resulting from the
increase IN the price Of silver The
subsidiary coinage, which under the
best conditions was never great IN
Mexico is now leaving the country
rapidly. Constructive suEges tiona
were expected from the secretary Of
the treasury &c meet this great finan-
cial problem confronting the govern
ment
Secretary Cabrera regrets that 4
has not been possible 70 resume pay
meut OF the public debt service. but
explains this by the statement that
countries that have gone through such
an uphearal as Mexico has expert
been IN a more critical condition BE
estimates the import dues for the
year az 100000 pesos as against
%, ZOO, 900 last year; export dues at
5000, coo as against 100000 lEst
year, the loss being due. it Is be-
lieved, 70 plans for reducing export Z
duties. considered economicaliy un- (
sound, 20 encourage industry and for
elgn lnvestm eutss mining tax dues at
100000 as against 1900. 900 last
year and the federal taxes az
100000 as against 21,ooo0Q0 last
year. no mention is made o. the Z
revenues derived from foreign and I
domestic properties seized BY the Car /
rama government although last year /
they gave 100000 pesos 20 the gov I
eminent The oil tax IS given a /
100000 pesos the same as last year, l
although the American companies I
paid i3.00oQ00 pesos IN 10 molths Of I
last year.
Statistics Not Available.
II Is pointed out in the advicss /
from Mexico City that these are /
merely estimates, as Statistics are not /
available On which 10 base an Eccur- /
ate statement as 70 the real returns. i
u Is probable that 80 win be some /
time before such statistics are avail /
able, but president Carranza. IN hi1 /
message 10 congress last month. adj 1
mitted for the first time that the /
deficit for 1917 was 100000 pesos /
and FOR 1878. 100000 pesos Il Is /
also pointed ont. as an example Of /
the untruEtWorthinesB Of AIexican Of /
fetal estimates. that for the period /
for which Cabrera now Figures rere- /
nues totaiine 16T.00o.000 pesos. Ra-
fael Nieto. when acting head OF the 4
treasury. submitted an official esti- /
mate that the revenues would be /
l72. 100000 pesos.
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