Evening star., 1928-09-30


chauvinism. Today that printing es-
tablfshment has gone out of business
and the products of the community arc
being sold in Mexico as American wares.
While our share of the Mexican mar
ket has risen from so per cent to 10
per cent since the outbreak of the war.
that of the United Kingdom has slipped
from IL per cent to 9 per cent during
the same interval and Germany's has
declined from IS per cent to 7.3 per cent.
These losses represent not so much de-
clines in actual values of European trade
in fact the sales of both Germany
and England to Mexico today are larger
than they we're in 1913. But the change
has been due to the vast increase in our
own sales to that country because of
her growing purchasing power.
Built Up by Specialties.
And 1t is important to stress that
! these gains on our part have been by
no means piled up at the expense of the
Old World. They have been built up
rather of distinctive American special
ties notably automobiles, office equip
ment. mining machinery. films and SIM
liar commodities in which Europe never
has offered us any serious competition.
Similar gains are indicated in our i'm
ports from Mexico. They were from an
annual average just before the war of
$4,000, 900 to S133,0o0,000 last year.
Mexico is our third Latin American
market. following Argentina and Cuba.
She outranks Brazil in that respect Qast
year bv the substantial margin of some
$20,000,000), even though she has con-
siderably less than half of Brazil'S popu-
lation and fourth of her area
The per capita figures of MeXico's I'M
ports have been climbing steadily from
$500 for the years just before the war
to nearly $l2 today.
A good portion of this increase is un-
favorable from the point of view of a
sound development of Mexico's economic
system, in that 1t is due to sharp in
creases in imports of foods and other
commodities producible in Mexico on a
practicable commercial basis. But. even
excluding such commodities, large part
Of the increase Enthusiastically reflects 2
steady advance in buying power and
new consumer demands hitherto dor
mant. A review of the imports of the
country reveals quantities of cheap
manufactured sDccialties and semi
finished products, as we'll as essentials
of wearing apparel, apart from such
products as cheap shoes and cotton
goods which the country itself produces.
1t is inevitable that the concentration
OF effort to encourage new industries is
likely to result in the gradual divergence
of our trade from those lines into othe~7.
particularly the better grades of ma
chinery. factory accessories and farm
implements - reproductive equipment
necessary for the exploitation of re-
sources.
Although this development of new in
dustries may cut our exports of simila;
products, the improving wage scales will
inevitably stimulate demands for such
specialties as cheap safety razors, radio
sets and monographs.
Sales Are Increasing.
Our sales to Mexico of these items
have been increasing at a notable rate.
Between 1918 and 1927 our machinery
sales to her rose from $4,900.000 to
S9,176,000, so that for many years Mex
leo was our leading market for this type
of goods. Similarly We have increased
in the same time our sales of agricul-
tural implements from $433000 to
$1,700,0O0.
1t will. however. he many years be-
fore native food production is likely to
cut into our exports 10 her of such COM
moditieS. which in the case of lard and
-four reached $7000.000 last year. The
total production of Mexicos nine lead
ing food items, headed by corn and
beans. declined II per cent from 1906
10 to 1920-24. 1t is beyond the limits
of this review to go into this agrarisn
problem, but we would hesitate to as
cribe the cause exclusively to civil dis
turbances. as the long peace of the
Diaz regime brought no great gains in
these commodities. Apparently the de-
velopment of native production waits
upon long-view irrigation program. an
eo@ally prolonged highway construction
schedule. far more pretentious ad-
vance in agricultural education and
effective land lew reforms.
These matters are being vigorously
prosecuted by the present regime and
will undoubtedly be featured bv its sue
cessor. The solutions are still regret
tablv remote. but the tasks are of in
credible proportions and definite be-
ginnings have at least been made.
Complex Problems.
The problems confronting our traders
in Mexico are of considerable complex
ity, but they are by no means insur-
mountable, as is witnessed by progress
already made in our trade there as car
ried on by competent merchants with
sound, well developed agency. credit and
sales policies. In such a confused and
changing market as Mexico, one of the
outstanding questions is that of the
status of individual distributors. The
Great War and the subsequent world
trade collapse altered the position of
many Europeans who once served as
Intermediates for American exporters.
Our merchants have, therefore, turned
either to native houses, or have eStab-
lshed their own direct branches. In
those cases where the newcomers in the
Mexican field have encountered diff
culties the reason has almost invariably
been lack of careful scrutiny as to the
status of agents and other distributors.
Caution In these particulars will be es-
pecially essential as business RECEIVERS and
attracts the y-by-night promoters who
invariably hover over every profitable
trade area.
Another Weakness.
A second weakness of our CONNER
cial effort south of the Rio Grande has
been the tendency toward concentra-
ton in Mexico City and the assignment
of the whole of the republic to agents
in the capital. This might work salts
factorily where the representation thus
chosen is large concern with many
branches throughout the country. But
there ere many major trade areas be-
yond that immediate tributary to the
capital which frequently can be culti-
waited more effectively from other CEN
terS. For example. there is the West
Coast, whose major distribution point
is Mazatlan; its isolation from Mexico
City has only recently been bridged