although it is true that business is now disarranged, but only temporarily we believe, through the fall in the value of the silver standard. Mr. Leay has evidently taken great pains to make his report of service to exporters, since he has gone into numerous details in describing the classes of goods which are in demand and has specified the manner in which they should be packed and invoiced for the customs authorities. This makes his report one of the most valuable which we have received through the foreign office for a long time and, in fact, ought to be a model for other consuls. There is also a series of tables of statistics relating to the imports and exports and to the shipping entering Mexican ports during the last five years. The decline of British trade is clear from the figures we quote from the report. In the years 1893-1895 imports from the United Kingdom formed 17 per cent of the total; in the period 1898-1900, 18 per cent; and last year it was only 13 per cent. In 1901-2 the imports from the United Kingdom and its colonies were valued at $8,142,038, against $9,659,515 in 1900-1901, a loss of $1,517,477. It is fair, however, to mention that the import trade between Mexico and other European countries has also declined in that period, Germany showing a decrease from $6,890,964 to $6,277,785, a difference of $613,179; France comes next with a decrease of $272,524—that is, from $6,389,715 to $6,117,190. On the other hand, the imports from the United States increased from $34,260,160 to $36,401,420, a gain of $2,141,260, almost exactly the value of the trade lost by Europe. It should be borne in mind that these figures represent, as nearly as possible, actual values, since in Mexico the excellent system has been adopted of valuing exports and imports at the actual rates of exchange of the day, another instance of the careful and practical methods of Señor Limantour. The high rate of exchange has tended to stimulate domestic manufactures in many important lines, while the Government has made some efforts to encourage exports with a view to reducing the unfavorable balance payable in gold. This has been especially the case with cotton manufactures, and the steps recently taken are likely to result in diverting to Mexican mills a considerable portion of the trade in several Latin American countries at present principally in British hands. Great progress has been made in the last few years in diversifying the industries of Mexico, and the decline in silver has not, therefore, found the country entirely dependent upon its mineral exports. Railway building in various parts of the Republic has continued vigorously, and the investment of capital, particularly American, in mines, plantations, and industrial enterprises has been as great as ever, til at present the American capital aione is estimated to amount to over £100,000,000 ($486,600,000). The consul makes the following important suggestions for improving trade: "We can not afford to ignore the Mexican market, nor a country whose revenues have increased in twenty years from £2,000,000 to £6,000,000; imports from £3,000,000 to £13,000,000; and exports from £3,000,000 to £13,000,000. I would advise those who really wish to do business in Mexico to guarantee fixed salaries to agents for a year or two with the promise of a certain commission in addition when the sales exceed a certain amount. The Americans have succeeded throughout the country by paying large salaries and being well represented. "We must make what the foreigner wants, and it would be well if on receipt of an order from this country the directions as to the goods required and the mode of shipment were followed absolutely. "We could do with more commercial travelers. almost all British, apparently excellent business men. The few we have are now They have a knowledge of the language and tact, which is perhaps even more necessary. Those with choice samples will always do well. No 278-03-3 'Price lists should be in Spanish, and firms should quote, as our travelers now do, f. o. b., c. i. f., inclusive. All prices should be quoted in sterling, or gold dollars perhaps better, reckoning $5 to the pound sterling. The Mexican seldom understands our pounds, shillings, and pence. To many old firms credit may safely be given, but the rule in other cases should be cash with order or against bill of lading. Our merchants should do their best in filling orders for Mexico to dispatch the goods at once on receipt of order if in stock, or to put the order in hand immediately if the goods are to be manufactured. It is, as I have already pointed out, the proximity that gives the United States the advantage, and while that must always remain so we should do our best to reduce that advantage to a minimum. Merchandise can be ordered from the United States and delivered in Mexico in from three weeks to a month; from England, in from eleven weeks to three months, and there is no reason, unless in exceptional cases, why there should be further delay. Besides, we have the other European countries to compete with and must show at least that we can do as well as they." The following is a résumé and condensation of articles in the Mexican Journal of Commerce of August 1, 1903: The Mexico has 11,185 miles of railroads, valued at more than $1,000,000,000 Mexican. So recent a thing is railroad building in the Republic to the south that one sees engines in operation that hauled the first trains that Mexico ever ran. earning capacity of capital in Mexico is considered safe. Fully $500,000,000 have gone in from the United States, and of this 70 per cent has gone into railroads. More is entering every day. Pullman cars, huge Mogul engines, and gigantic freight cars are the rule now, where hitherto they had been the exception. Most of the rolling stock was made in the United States. If Mexico is making her mark in industrial prosperity it is because the Government was wise enough to get the railroads to give them a chance to grow; these brought investors, then manufacturers, then captains of industry, then prosperity. To-day trains run to all parts of the Republic, or will very shortly. Remote regions, held hitherto to be almost inaccessible, are being bound to the central city—the capital—by bands of steel. Ports like Veracruz are put into communication with transoceanic places. The rich mining and agricultural lands of the south are tapped till they pour their treasures into the world's markets. A mighty line is to connect Salina Cruz, on the Pacific, with Coatzacoalcos on the Gulf. According to careful estimates this road is to put New York and New Orleans 1,500 miles nearer to San Francisco than they would be by a passage through the canal at Panama. There are some who say it is to have a good deal of the trade that is to go over the Pacific. While the Panama Canal is to cost at least $180,000,000 gold, the Tehuantepec Railroad has cost about $45,000,000 silver, and will cost only a little more. The Mexican Government is quietly giving it financial aid and encouragement. The revenue required to make the two enterprises-the canal and the railroad-pay is $10,800,000 gold, against $2,700,000 silver. The saving of time is estimated at a high figure-not only the 1,500 miles difference in distance, but the slowness with which ships will have to pass through the canal are considered. [This item is hardly as important as the writers would have their readers regard it, the distance is so small.] An interesting feature is presented by the pan-American road which is rapidly reaching out toward Guatemala and is expected to form an important link in that chain of roads that is to connect Alaska and Canada with Patagonia, Brazil, and Chile. An independent line that of Yucatan-capitalized at $30,000,000, every cent of which was raised in Yucatan, is to stretch its arms out toward central Mexico. Besides these, there are numerous roads that touch the great lines feeding them freight from remote and once almost inaccessible regions. These are mainly mining, logging, and plantation lines; but even these pick up quite a lucrative line of extra freight and passengers. "It is a fact, as surprising as it is true," says one of the writers from whose article much of this résumé is taken, "that there is not a railway in Mexico, no matter how small and insignificent, but what enjoys a local passenger and freight traffic far in excess of the same pretensions in the United States." [In this connection it is perhaps worth while to be reminded that there are over 200,000 miles of railroads in the United States, many of which were built long before any great or paying amount of freight or passengers was expected. The Mexican roads were very probably not built till the builders were fairly sure of both passengers and freight enough to pay.] Gigantic growth of Mexican railroads.—In 1873 Mexico had 335 miles of railway. Over these went 723,834 passengers and 150,473 tons of freight, and the receipts were $1,848,375. In 1900 there were 8,460 miles in operation; 10,709,462 passengers and 7,522,923 tons of freight were carried and the receipts were $49,425,478. Since 1900 the mileage, freight, number of passengers, etc., have gone on increasing. Better ballast, steel rails for iron, steel bridges for wooden, first-class rolling stock, etc., all mark the methods of the Mexican railroad management. In the face of almost insurmountable natural obstacles-up hills, over mountains, and climbing precipices-the roads have gone till the tale, when told, sounds almost incredible. BUSINESS OPPORTUNITIES IN PARAGUAY. I desire to call the attention of capitalists and those engaged in commercial enterprises in the United States to the new financial law recently passed by the Paraguayan Congress and promulgated yesterday by the President of the Republic. I inclose herewith the entire Spanish text, clipped from one of the daily papers; also a summary translation of the same. The authorities having charge of the expropriation of half the hides for exportation, which will amount to about 125,000, will entertain bids from various sources on these hides. I would suggest to the dealers and importers in hides that from what I can gather the most advantageous bids would embrace the price f. o. b. Asuncion. The number of hides may be larger than this calculation because in 1891 the total number exported amounted to 238,495, and they are increasing every year. People who are interested in waterworks should also send in their bids. The Government will negotiate a loan of $1,000,000 gold, and the number of hides expropriated by the Government under this law will be offered in arranging the guaranty. Parties interested in hides should be prompt in bidding, for the reason that the President of the Republic is authorized at the expiration of three months to arrange the disposal of them. ASUNCION, PARAGUAY, July 15, 1903. JOHN N. RUFFIN, Consul. FINANCIAL LAW PROMULGATED JULY 14, 1903. Those portions of the law which are considered of special interest to American capitalists and traders are herewith given. The whole law is on file in the Bureau of Statistics, where it may be seen by interested parties. ARTICLE I. The executive power is authorized to emit paper money in circulation to the amount of 35,000,000 pesos,* divided up in the following form: ART. 5. Immediately after the sanction of the present law the executive power will contract ad referendum for the construction of closets and the establishment of running water, within the limits which the voted sources will permit, proposing to Congress the basis of such a contract, the quotas that have to be paid by each individual for closets, and the amount that they will have to pay for running-water service. ART. 14. The exportation of hides is subject to duties as follows: Thirty-five cents on each hide. Half the hides which will be presented for exportation are to be delivered to the administration of the custom-houses of the Republic, which will pay for them a discount of 60 cents gold each, according to the following prices: For each kilogram of dry hide, 26 cents gold; for each kilogram of salted hide, 16 cents gold; for each kilogram of fresh hide, 12 cents gold; for each kilogram of imperfect hides, one-third the preceding prices, according to the class. The administrations of the custom-house will pay these prices in effective gold or its equivalent in paper money at the current rate of exchange of the day, not to exceed 900. If the prices of the hides suffer variations that exceed 10 per cent in the consuming market, the executive power will proceed to the revision of prices established in proportion to these variations. From the 1st of January, 1904, at each time that the quotation of gold shall go above 900 the exportation of yerba mate will be subject to the following conditions. Besides the taxes already in vogue and created by this law, half of the yerba mate that may be presented for exportation to the custom-houses of the Republic will be delivered to them, paying therefor the prices established in the tariff of values in gold or paper at the rate of 900, according as the Government wishes. The exporters of this article will be free from the preceding disposition if they should sell to the Government drafts in gold at the rate of 900 up to the value of the amount of that part of the yerba comprehended in this law. * * * * * * In the absence of any recent information as to the value of the Paraguayan peso. American equivalents can not be given. In his report for September, 1902, Consul Ruffin gave the value of the paper peso at 8 cents-that is, it took 12 pesos to purchase a gold dollar. AMERICAN CATTLE IN SOUTH AFRICA. (From United States Consul Hollis, Lourenço Marquez, Portuguese East Africa.) I forward herewith a very interesting newspaper clipping, for the use of the Department of Commerce and Labor, concerning the importation of cattle from Texas by the Anglo-American Live Stock and Trade Company, the pioneers in what is apparently destined to be one of the means by which South Africa is to make good the ravages of war and the vast waste and loss of live stock during the unhappy struggle which has only recently terminated. One of the principals in this company filled an important office in the imperial service at Lourenço Marquez at one period of the war and was consequently able to judge the facilities which the port offers for the handling of cattle. The result is seen to-day in what is undoubtedly the most complete and practical arrangement for relieving cattle ships of their cargo which has ever been seen in South Africa. W. STANLEY HOLLIS, Consul. LOURENÇO MARQUEZ, July 14, 1903. [From the Gold Fields News of June 30, 1903.] THE DELAGOA CATTLE TRADE. From the coast plains of Texas to Delagoa Bay is a far cry, but applied science has in these days obliterated distance and enables the astute man of commerce to draw his supplies from the ends of the earth, the mere question of mileage being one of the minor conditions in the problem of transport. Texas, as the State which ranks first in the Union in the breeding of cattle, naturally suggested itself as the source of supply, and the success of the first two shipments has been so conspicuously encouraging that the company are following up their recent arrivals, numbering 4,050 head of cattle, with seven more consignments, which will bring to these shores 8,300 more. With a view to indicating what is really the birth of a new branch of the trade, the writer paid a visit to the Port Matolla, where the steamship Cranley, a British vessel, is now discharging a cargo of 1,500 heifers and a few well-bred bulls. Owing to an accident to her machinery in the Gulf of Mexico, the ship was delayed at Barbados, but notwithstanding the somewhat long voyage of forty days she arrived at Lourenço Marquez with a record of only 13 deaths among the cattle. There were, however, 16 "new arrivals" to report en route, so that the result may be described as eminently satisfactory. The first shipment by the Atlantian, which brought the record cargo for South Africa, consisted of 2,550, with 22 casualties, so that it would seem that the company has in a measure solved the question of cattle transport and put to shame those who were responsible for the disgraceful results attending many of the attempts to bring live stock from Argentina and elsewhere during the war. The Cranley's cargo consisted entirely of breeding stock, all from the hinterland of the port of Galveston, Texas, and made up of Shorthorns, Shorthorn-Herefords, Jerseys, Holsteins, and pure-bred Devons. As to conditions, it may be fairly |