The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1938-08-29
MEXICO FEELS
worst PEACE
time SLIME
Depression, in End Year
Still Grows; But Peo-
pie Patient
Bv WILLIAM LANDER
I'D Press Staff CorrespondeI

United HreSs Stdll wi fS'po''''
MEXICO, ID. f., Aug. %
UP). - Mexico today is in Il
thloes of the worst depression .
has known in modern peace time
The crisis is well in its sccor
wear. It's first symptoms appca
ed early in 1887, and ny the TN
the rainy season started IN Ju'
which always brings with 1t
seasonal business decline due t
transportation difficulties II ";
on in full force.
Toward the end Of 1897 thcl
was glimmer of hope that Il
situation might improve, but !
January, 1898, the governmer
dictatorially implanted the steer
est tariff duties Mexico has exc
known. Soon everybody knew Il
cause: the Bank OF Mexico W;
having difficulty in maintaining
the peso at its pcggcd rate OF 30
to the dollar, and needed TO pr'
tcct its gold and silver reserves !
curbing imports. That SITUATE
produced a flight of capital.
GOVERNMENT ABANDONS
PESO
Then came the dramatic deyc
opmcnts surrounding the SclZuI
Of the foreign oil companies
March IS, 1898. The gOvcrnmeI
abandoned the peso 10 lis ON
fate, and is now quoted at aroul
five to the dollar. The ucasm
on March 23 terminated it's Sllv'
purchasing agreement with Il
Mexican government, but cushion
cd the shock Of this action som
what by continuing To buy silv'
produced in Mexico, mostly
Amcrican-owned mines.
From then on the situation h:
become worse; foreign trade h:
fallen off 80 to 30 percent, ~
the end apparently is not in sigh
Thousands are unemployed a.
many who do have jobs are ha
ing a hard time trying to NAL
ends meet. Many concerns at
people make no attempt TO me-
with various financial obligation
Some small business houses ha'
gone into bankruptcy, but no b
ones.
OH. MARKET CURTAlLED
The government, now that il
in the oil business. is finding
hard to sell it abroad. Product,
has been curtailcd. Workers
the petroleum fields on August
were given small raises, which W
total about 10000 pesos mont
" for the $4,000 employees
this is much less than the incrca
rs they were scheduled to =
from the appropriated cOmpanlC
To weather the financial Stou
the government has rcSortcd
mild silver and bank note IntI
ton. and rcSortcd to - perez
export tax which went into eff"
on August .. This will hit Il
mining industry principally.
Prices Of all goods have be-,
high for two years. and there
no sion Of Improvement IN th
regard. An important food stap
in the Mcxican'S diet is bra
(friiolcS). Three years ago the
cost 1G ccntavoS kilogram; 10
they cost from - TO 60. II
Wholesale price index stood
gl.6 in March 1896 with ~.
taken rs 1907: it climbed
1900 in July 1887 and is now 4:
1920. General publication {
these figures has been diScontin'
ed. TO avoid rrumling.
REGIME NOT WORRIED
Despite these troubles the go .
crnmcnt appears not TO be NO
ricd. and the PEOPLE have a Ion
reserve Of patience.
"McXico is n country with a 10
standard Of living. and is a"cu
toned TO suffering" Prcs'dci
Lazaro Cardenas recently said.
Everywhere one TocS. cor
plants against Communist
against the CardcnaS agrarla
policies. of the failure 10 co-o'
crate with the United States Al
heard.
Generally. however, a phil
sophical postscript running som
thing like this will be added:
"Well, anyhow. things are n
as bad as they were during Il
revolution. We've seen the do
Ia ruuoted at 20 to |; and oft,
we didn't know if the paner pes
issue done day would be wort
the next After all.
MEXICAN can live on couple ,
tnrtilnS q DIV with a little rati,