The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-11
CREDITS RULE
IN YUCATAN TRADE
Manufacturers Must Finance
Exports for Six to Eight
Months.
WARNING rs SENT OUT
Representative Of q. 8. Elk
porters in Mexico Recon-
mends @ Cash Business.

n r. absolutely inadvisable for Amer
loan manufacturers to attempt to do
business In Yucstan, Mexico, unless for
cash agninst documents in New York, or
unless they are willing to extend credit
and walt from six to eight months be-
fore receiving payment This advice has
just been received by the American Man
ufacturers Export Association from It's
representative In Mexico. and 10 based
upon n thorough investigation OF condi-
tions In the Mexican province.
The representative of the association
was requested to make this investigation
following numerous complaints from
members in which Il was alleged that
payment had not been received for goods
shipped to merchants In Yucatan six and
eight months ago.
An interesting part Of this report
states that the commercial situation In
the rest of Mexico Is rapidly improving
and that some foreign concerns are be-
ginning to extend limited credits.
The associations representative spent
about two weeks in Merida, the capital
Of Yucatan. and during that time he
conferred with a number of local mer-
chants with regard to trade conditions
and the prospects of doing business on
some basis.
AHo TopOTL rchub IN part as tOlVWbs
THE Comision Reguladora has abso-
lutte control of all finances In YucatAn:
there exist no banks or banking houses
and merchants who have foreign obli-
cations are obliged to buy there drafts
through the Reguladora. Before these
drafts are issued money has to be de-
posted with them and as there never
Is any cash available. and as the Regu-
ladora has no credits in the States,
months 60 by before the merchant finally
obtains his draft.
. There Is no currency in Yucatan OF
any kind except paper money. which.
owing to abnormal conditions. is at pres
ent quoted at four to one. The history
Of the Reguladora Is long one and Its
practices have practically brought one OF
the richest provinces OF Mexico on the
verge of bankruptcy.
There is plenty Of opportunity for
business in Yucatan. but the great
problem is that of financing purchases
Some of the stronger houses still have
credits in the States: others. also relia-
BILE concerns, have to depend on being
financed by their representatives In the
States.
ut is absolutely inadvisahle for Amer
lean manufacturers 10 attempt to dc
business in Yucatan ~unless for cash
against documents in New York. or UNI
less they are willing to extend credit and
walt from six to eight months before re-
ceiving payment.
There are plenty OF good and reliable
commercial houses In Yucatan whose
credit rating is of the highest. but owing
to the control exercised by the Regula-
dora over all finances the commercial
situation Is completely demoralized.
THE situation in Yucatan has been the
subject OF considerable discussion in the
Mexican Senate and indications are that
matters will be brought to a head
shortly.
1.-The commercial situation in the rest
of Mexico is rapidly improving and some
foreign concerns are beginning to extend
limited credits"