The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1919-11-25
MEXICO RELIES
IN FOREIGNERS
FOR ITS CAPITAL
Imports To Country Increase,
While Exports Fall UT,
Says Cabrera.
REPORT DISAPPOINTING

WASHINGTON, Nov. 24-Luis Ca
brera, 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 opti
mism or for black pessmism." He
estimates the revenue for the year
1919 at 149,3S4,O00 pesos, although
President Carranza, in his message
to congress Sept 1, 1919, estimated
it at 162000,U0O, basing his estimate
on the returns for the ten months
from September, 1918, to June of this
year. The revenue for 1920 is esti.
mated at 167,O00,000 pesos.
In submitting this report to the
house of deputies, Secretary Cabrera
says that while the difficulties ex-
perienced by the fedenal treasury,
due to causes well known to all, are
far from having disappeared, unmis'
taxable signs of Improvement have
been noted in many aspects OF the
economic conditions of the nation and
hence in the financial situation of the
federal government" He admits that
Mexico was formerly and still Is de-
pendent upon foreign capital, in dis
cussing conditions in all the so-called
"young nations" of the world which,
he says, have experienced "the sus
pension OF the influx of capital from
countries economically stronger" and
are exerting vigorous efforts to be
self-supporting."
Effects of both of these influences
have been felt in Mexico, he says,
and will continue to be felt, in part
at least, during 1920. The report
confesses that "our economic. life was
based formerly on az continuous
stream of capital from abroad, this
resource not being open to us at
present except in very limited
way"
Secretary Cabrera says the imports
for the first four months1of the year
to .7S,000,000 pesos, as
against 54O0O,OO0 in the correspond
ing period last year. The exports
show decrease from 22230, 900 pc.
SOS from the first four months OF
1918 to 10S 800, 900 for the correspond
ing period this year. Mexican ex.
perts point out that this means that
the balance of rade was so favorable
to Mexico because of the crying need
of the world for raw products which
to large extent still exists through
the reconstruction days following the
war, but that Mexico is unable to take
advantage of these conditions because
Of the serious situation within her
borders.
The report caused some disappoint-
ment because 1t did not indicate what
steps will be taken to meet the cur
rency situation resulting from the in
crease In the price of silver. The
coinage, which under the
best conditions was never great in
Mexico, is now leaving the country
Constructive suggestions
were expected from the secretary of
the treasury to meet this great finan'
cial problem confronting the govern
ment.
Secretary Cabrera regrets that 1t
has not been possible to resume pay
ment OF the public debt service but
explains this by the statement that
countries that have gone through such
an upheaval AS Mexico has expert
enced In the last ten years have often
been In Il more critical condition.
He estimates the import dues for the
year Mt 40,000,000 pesos as against
25,000,000 last year; export dues at
100000 as against 14,000,O00 last
year. the loss being due. It is be.
lieved, to plans for reducing export
duties. conSldered econpm' cally
unsound, to encourage industry and
foreign investments; mining tax dues
at 100000, as against 100000 last
year: and the federal taxes at $4,000.
900 as against 31,000,000 last year. No
mention is made of the revenues de-
rived from foreign and domestic
properties seized by the Carranza
government although last year they
gave 100000 pesos to the govern
ment. The oil tax is given at 12,O00,-
900, pesos, the same as last year, al,
though the American companies paid
100000 pesos In ten months of last