The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1920-04-12


from an extended business tour of Mexico. He Wis
tied Monterey, Saltillo, San Luis Potosi. Tampco
City of Mexico. Guadalajara, Leon. zacatecas and
Torreon. Ne made Investigation of trade and gen.
eral financial conditions. In discussing the result
of his observations he said:
Mine -tenths of Mexicos foreign trade is with
the United States and all American manufactured
ticies finding ready market there. Mexico's
whole trade with all other Latin countries for
year is less than her trade of two weeks with the
United States.
Americans living and doing business in Mexico are
on good terms with the Mexicans. They have built
railroads. opened mines and oil wells, developed
farms established factories and have done much for
the development OF the country.
"Poss Utilities for future development unlimit-
ed. Mexico has much more sugar-cane land than
Cuba yet Mexico produces only 100000 tons of
each year. while Cuba produces 100000 tons Also
Mexico produces 40 per cent OF the silver Of the
world. Abandoned silver mines are being reopened
and old dumps being worked Mexico is capa-
BILE of sending 100000 pounds of guayue rubber
to the United States annually and dye woods 1t is
wonderful country. because naturally md
abundanty rich.
THE greater part OF my time spent in study
ing banking conditions. The banks Of Mexico are
under great handicap due to the unsettled
condition of the country for the past 10 years.
Il stood in the largest bank Mexico and watched
with wonder the amount of gold coin passing
through the paying and receiving windows. This
bank has i35 employees, but very small percentage
of the business is handled with checks drafts, bills
of acceptance any kind of order. Should
toner present a draft money order upon this
bank, any other Mexican bank. the process is
to turn the order to officer and wait 10
minutes at the receiving window The paying tellers
receive all orders from the credit bookkeeping de-
partment and upon receipt of they issue the
coin in boxes built purposely for the occasion.
ION the outside you will sacks of gold and sill
yer upon the shoulders of the runners milling in
they never know until the end Of the day whether
their will consist of 100000 pesos TO-
100000 pesos. Most of the banks carry at least 81
per cent of their deposits in reserve, great are
the lack of banking facilities.
with the single exception of the City of Mexico.
VERY few banks of any size to be found. On
account of the years of revolution just coming to
close good banks have been replaced by small money
changers and brokers. No paper certificates are in
circulation with the exception of the so centavos
and una peso issue. just recently put out by the
comisio monetario to be redeemed at the minis
owned by the government. People will generally
take them change, but prefer to pay 10 per cent
for silver gold You may walk into many mer-
camille establishments and the sign, no cambio'
which means no change, and IL you purchase a
dollars worth of goods without change. the con-
sequence is that you must either leave the goods.
| go out and get the change pay the nearest
equivalent above the amount purchased
/ Along the border and in the ports United States
coins are readily accepted at twice the amount of
Mexican money, but American money is not found
in the interior of Mexico, where coupon books are
resorted to as OF relieving the shortage of
change.
THE wide gulf between the rich and poor Of
Mexico is Of the outstanding features of the
country. The majority very poor, though there
are great many very rich people in Mexico AS
far banking is concerned, the rich people keep
| their accounts the border with some
European concern. some in Spain and in Lon
don. There few deposit accounts that an
American banker would call good with the possible
exception of some large business concerns Money
is hidden away in the ground, in safety boxes and
in every conceivable place, rather than in banks
Apparently this money is coming to light again and
the country is rapidly returning to her old business
conditions"