OCR Text |
Show MEXICO FINANCE HEPOffNS GIVEN By Universal Service. WASHINGTON, Dec. 1. For the first time since the United States entered the war the administration today frankly discussed dis-cussed the financial strength of Mexico, the condition of her transport systems and the radical measures apparently contemplated con-templated In her plans for reconstruction. The discussion Is In the form of a report bv a bureau of foreign and domestic commerce com-merce of the department of commerce designed de-signed to inform American "business men of the foundation of economic security as It now exists in Mexico. After pointing- out that the past five veara have witnessed the doubling of American imports from Mexico and exports ex-ports to her merchants, the report takes up President Carranza's annual message and his statement that the government has been able to meet its expenditures expendi-tures from federal revenues. It is pointed out that the Mexican government has paid no interest on her huge external debt since 1913; nor on the stocks, bonds and notes of the national railways seized in 1914, this unpaid interest totaling about ?75, 000,000. The report says: "President Carranza's message appears to offer no relief in this direction." The report says that the government is obscure in Its statement of railway earnings earn-ings and In this connection that the government's gov-ernment's appropriation of some ?25,000,-000 ?25,000,-000 t'iom the old French-cwned banks,: while regarded as a loan with preferred obligations, is deferred in payment. As the report is drawn for the purpose of guiding American merchants in planning plan-ning what part they may desire to take, in trade to or from Mexico, considerable' space is devoted to a discussion of the railway systems. j The report states that the majority of , Americans who served as railway officials previous to 1914 have been removed from i their positions, and, as a result of this and I the frequent fighting, tracks and roadbeds of the railways are in a serious condition. The railroads have lost much ot" their rolling roll-ing stock, although there sre some privately pri-vately owned cars. The report then says: "In order to avoid the excessive delay and inadequacy of the official sei-vice. private concerns undertake to guaranty prompt deliveries bv charging 75 per cent in addition to the regular tariff. The 75 per cent represents rep-resents the private companies' charge, while tho tariff rate ts paid to the gov- j ernment for the privilege of operating trains." The report further says: "The Mexican Mexi-can congress has authorized the placing of three loans, amounting to about $150,000,-OiiO $150,000,-OiiO for the purpose cf reorganizing the finances of the railroads, but the September Sep-tember message states that It has been considered advisable to await, a more favorable fa-vorable time than the present for the. negotiation ne-gotiation of a loan." A factor which of late . has been held up as a menace to the future friendly relations re-lations of the United Stales and Mexico is the Intention of the Mexican government gov-ernment to transfer mineral and oil properties from private to national ownership. own-ership. Much of this property represents huge investments of capital which has played a major part in the development of much of Mexico's resources. In disci irsing the outlook for the immediate im-mediate future the report states: "Mexico's plans for reconstruction thus appear to include a continued determination: deter-mination: "1 To nationalize petroleum and other mineral properties. "2 To utilize for government purposes the net earnings of the national railroads and other organizations. "3 To defer payment of the forced loan of M. 000, 000 pesos from the collapsing banks of issue. "Agalrst these factors must be noted a prospective increase of control over the revolutionary elements, the splitting up of large holdings into smaller tracts, bringing bring-ing about cultivation by agriculturists, and a bettf-r condition of private credit." In conclusion, the report states that Trade Commissioner Kdward F. Feely is about to make a tour of Mexico and furnish fur-nish detailed reports on the commercial situation in the country. |