East Oregonian : E.O. (Pendleton, OR) 1888-current, 1921-09-26
IMPORT DUTY ON FLOUR
REMOVED BY MEXICO IN
/. FEAR OF WINTER FAMINE
Yucatan Industry Stagnated,
Suffering Iminent; Silver
Duty Upheld; Face Oil Crisis
(BY LoUdS p, KIRBY.
International News Service Staff
CORRESPONDENT.

Correspondent.
MEXICO CITY, Sept, 26,-Econo-
mists in Mexico are finding that ex-
perimenjs in protection call for as
much caution as experiments in chem
listry.
The latest experiment to fail was
protection Of the flour mills. The gov
lernment has now decided to remove
the new import duty on flour begin
ming October /.
Millers, among whom are many in
iflucntial men in Mexico. a few months
ago appealed to the government for
relief, saying that because of the high
price of wheat in Mexico they were
unable to operate with profit and
compete with the cheaper flour ship
ped here from foreign mills
Accordingly "A decree was issued re-
.qu,ring importers to pay duty on ship
ments of flour. This proved satisfac-
tory to millers and wheat growers, but
was not so pleasing to bakers and con-
sumers, especially as Mexico's crop
shortage threatens high food prices
this fan and winter. Conviction that
Mexico will need foreign flour-and
from the bargain counter-this winter.
it is sad, has caused the decision to
remove the import duty.
Many other steps have been taken
to prevent, If possible. distress during
the coming winter and to stimulate in
dustry. one of these was the reduc-
tion of the export duty on homequin
from six to two cents. This was in the
hope of improving conditions in Yu-
catan and neighboring states, where
there is at present great depression,
due to stagnant industry and the agi-
tation of radicals.
Face Oil Crisis.
But the government has refused to
reduce the export tax on metals. and
/ this has caused surprise, as hundreds
! of silver mines, which made efforts
! to resume operations during the past
year, have been closing down because
of alleged inability to meet expenses
and pay the present taxes.
When the refusal of the government
was announced at the office of Secre-
tary of the Treasury de la Tuerta, ii
was explained that both Germany ard
Russia were preparing to coin vast
amounts of silver currency and that
i, this gave assurance of an advance In
the price of the metal
! If the advance in silver comes and
is large enough to stimulate active
production on a large scale. it will be
a great relief to Mexico, as thousands
of miners are reported to be in idle
ness in the mining states.
Still another advance is needed and
that is in oil. The present suspension
of industry in the oil fields in the ".
cinity of Tampico has had far
Ireaching effect and will be felt more
Ipoignantly as winter approaches.
Practical suspension of oil exporta.
ton has deprived the Mexican govern
ment of an important source of reve
nue.. and this revenue IS badly needed
With the income from the oil fields
1.-The Mexican government has beer
able to do much to relieve conditions
in many sections by carrying on pub
lie work. And it will be hard to con
.tinue this work without the returns
from the oil fields and at the same
time meet other expenses.
Tampico and its surrounding terri
ltory have also given employment t.
thousands who have been unable t.
get work in their own sections of Mex
leo, and if these thousands must scat
tier through the country it wi,I increas'
local problems. which are already Sc
rious enough in many cases. In add
tion to this, Mexico is not so far re
moved from the days of revolution
that it need not feel uneasy about hav
ing a large element that is idle, dis
contented and needy.
Americans V.nd Gated.
When oil companies first suspend