AN ECONOMIC STUDY OF MEXICO. 455 



South American countries, the English and the German merchants take 

 special pains, not only to adapt their merchandise to the peculiar tastes 

 of the people with whom they wish to deal, but also to cultivate their 

 good- will. The representatives of the United States, as a general rule, 

 do neither. Another explanation is that our European competitors in 

 foreign trade recognize at the outset, and at all times, that trade, es- 

 pecially when involving radical innovations on old-time precedents 

 and usages, is not of spontaneous growth, but has got to be cultivated ; 

 that it is a system in which product is to be given for product, and 

 service for service, and therefore, from its very nature, can not be a 

 "one-sided business." Accordingly, the German and English merchants 

 in Mexico take in exchange for such wares as they desire to sell, and 

 at a certain price, whatever the Mexicans have to offer of their prod- 

 ucts. The American merchant, on the other hand, finding that the 

 commercial policy of his country is based on the assumption that such 

 a system of exchanges is not desirable, and that its existing laws make 

 reciprocal trade difficult, does not seem even to attempt it. And in 

 connection with this subject it may be stated, that during recent years 

 German merchants have bought merchandise in New York, which 

 American manufacturers have acquired particular advantages in pro- 

 ducing, shipped the same to Hamburg, and after re-exporting to 

 Mexico, sold them at cheaper rates than any American engaged in 

 direct trade could afford to offer ! How such a result, which on its 

 face seems so mysterious and paradoxical, is accomplished, may be 

 best explained by example. Thus, the German, who has become thor- 

 oughly conversant with Mexican methods of doing business, could sell 

 say $3,000 worth of American cottons, furniture, sewing-machines, 

 and the like, at cost, or possibly even less than cost, because his system 

 of selling is to exchange them for $3,000 worth of Mexican products, 

 which he can afterward sell, it may be, at $5,000, or a sum which 

 would give him a fair return for all his risks and for long credits, and 

 also reimburse him for all the expenses of extended transportation. 

 And the Mexicans are contented with their share of the transaction, 

 because nothing better is offered to them. 



The annual value of the total import trade of Mexico is probably 

 not in excess of $35,000,000 ; of which the United States already con- 

 trols a large proportion. Thus, for the year 1883, the returned value 

 of all merchandise exported from the United States to Mexico was 

 $16,587,630; of which $14,370,992 was "domestic," and $2,216,638 

 " foreign " merchandise. This was, however, a year of very active 

 railroad construction, with an abnormal employment of Mexican labor, 

 and large disbursements of American capital in the country. Since 

 then, there has been a marked falling off in exports from the United 

 States (less than $13,000,000 in 1884), which has been attributed 

 partly to the withholding of orders in anticipation of the ratification 

 of a commercial treaty between the two countries, and partly to the 



