By far the greater part of Mexico's trade is done with her northern neighbour, the United States, and the following table shows how the various countries of the world rank in their commerce with the Republic, according to the figures for the year 1906-1907, in £ sterling, with fractions omitted.[41]
| Country. | Exports. | Imports. |
| £ | £ | |
| Great Britain | 3,187,000 | 2,360,000 |
| Germany | 2,011,000 | 2,450,000 |
| France | 805,500 | 1,760,000 |
| Belgium | 538,000 | 300,000 |
| Spain | 300,000 | 800,000 |
| With other countries, European total | 6,850,000 | 8,330,000 |
| United States | 17,581,000 | 14,638,000 |
| Canada | 45,700 | 45,000 |
| Central America | 79,000 | 7,000 |
| South America | 10,000 | 39,000 |
| West Indies | 237,000 | 19,000 |
| Sum Total | £24,800,000 | £23,336,000 |
| ======= | ======= |
41 Adduced from the "Mexican Year Book, 1908."
Thus the commerce of Mexico is seen to be in a satisfactory and growing condition, and it may be expected to develop steadily, as the large unworked areas of minerals and agricultural land become opened up by both native and foreign capital, towards which there is an increasing tendency to investment.
Banks and Currency.—The chartered banks of Mexico are considered to be solid institutions, and their past history has been a creditable one. The leading banks are: the National Bank of Mexico, with a capital of £3,200,000, and reserves of £2,675,000; the Bank of London and Mexico, capital £2,150,000, reserve fund, £1,500,000; the Mexican Central Bank, capital £3,000,000; and various other mortgage and commerce banks, clearing house, &c.; whilst throughout the state capitals are the respective chartered banks of such states, as the banks of Chihuahua, Yucatan, Durango, Zacatecas, &c., &c. The total capital of all Mexican banks is given as nearly £20,250,000. The currency of Mexico is now established on the gold basis. Previous to the year 1905 a bimetallic system had always prevailed in Mexico, a gold and silver currency; and as Mexico was one of the largest producers of silver in the world she had naturally encouraged the use of the white metal, whose coinage at the mint was free; whilst the demand in the Orient for Mexican dollars was a stimulant to the production of these. The fall in the price of silver was, to a certain extent, beneficial rather than inimical to Mexican industry, as it had the effect of stimulating home manufacture in a country whose raw material and labour was paid for in silver. This would have been permanently beneficial had the value remained constant, but the continual fluctuation in the price had an unfavourable effect on commerce, and a monetary commission decided that the gold basis should be adopted, and this became law accordingly; the Mexican peso or dollar being of a value of half an American dollar, or equal to approximately 2s. of British currency.
Principal Industries.—These have already been spoken of in the chapters dealing with mining and agriculture. There are throughout the country more than 150 metallurgical establishments, native and foreign, which treat the mineral ores from the mines, either by amalgamation, lixiviation, or smelting. The principal smelting works are those of the American Smelting and Refining Company, of New York, with a copper smelter at Aguascalientes of 2,000 tons daily capacity, and others at Monterrey, Chihuahua, and Durango, well-equipped modern establishments; the Compañia Metalurgica Mexicana, also of New York, with a large plant at San Luis Potosi, and other enterprises in various parts of the country engaged in the production of gold and silver bullion, copper matte, lead, zinc, &c. A good deal of ore is still exported, nevertheless, in a crude state, amounting in 1907 to a value of £1,700,000. The Mexican Chamber of Mines, founded in 1906, is a useful institution in connection with the mining industry.
| BRITISH ENGINEERING WORK IN MEXICO: BUILDING A BREAKWATER. |
The cheap labour and abundant raw material are conducive to Mexico's development in manufacturing; and a further element is that of the abundant waterpower which exists in certain sections of the country. Several important hydraulic and hydro-electric generating stations exist, among them being the Santa Gertrude's Jute Mills of Orizaba, developing some 5,000 horse power, operated by British capital; the Vera Cruz Light, Power and Traction Company, Ltd., also British; the Atoyac Irrigation Company, native capital; the Anglo-Mexican Electric Company of Puebla; the Puebla Tramway, Light and Power Company, a Canadian enterprise of great extent and promise; the Mexican Light and Power Company, also Canadian, which absorbed several existing native and foreign enterprises. Connected with some of these important and generally prosperous hydro-electric installations the name of a well-known British firm[42] figures prominently; the builders of the great valley drainage work and the re-constructors of the Tehuantepec Railway and harbour works, and the Vera Cruz harbour works, and other matters of magnitude. So if, as has been stated elsewhere, British trade in Mexico is declining, it is at least satisfactory to show that British capital and enterprise has established and profited by some of the greatest engineering and public works Mexico has ever possessed; which will always remain as monuments to British thoroughness. Other hydro-electric stations are those of Guadalajara, at the famous falls of Juanacatlan, operated by native capital; the Guanajuato Light and Power Company, an American concern, with a transmission line 100 miles long.
42 S. Pearson and Sons, Ltd., London.