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INSTITUTE OF SOCIAL ANTHROPOLOGY PUBLICATION NO. 6 



Mexico, and except for some local products, 

 prices rise and fall as they do in the rest of 

 the Republic. In 1945 the fact of most impor- 

 tance was that Tzintzuntzan had suffered the 

 same disasti'ous inflation found in all other parts 

 of the country. Speaking not only of Tzintzun- 

 tzan, but of all other rural sections of Mexico, it 

 is interesting and terrifying to see how the greedy 

 finger of inflation reaches into the most remote, 

 out-of-the-way places, upsetting price structures 

 which have endured with little change for many 

 years. There are few if any places in Mexico 

 where the state of the national economy is not 

 reflected. Fortunately for Tzintzuntzan ■ — and 

 countless other similar rural pueblos — the ef- 

 fects of this inflation have been much less disas- 

 trous than in larger population centers where 

 many people work for fixed wages, which do 

 not advance at the same rate as costs. 



As we have seen, the relatively well-to-do man, 

 aside from a bit of hoarded silver, has very little 

 cash on hand subject to inflation. His money 

 is in land, and it appreciates as the value of 

 currency goes down. And the Tzintzuntzan pro- 

 ducer, be he farmer, potter, or fisherman, finds 

 that the price of his products has risen about in 

 proportion to the price of clothing, food, and 

 other items he needs. He pays more for 

 his purchases, but he receives more for his sales, 

 and, in the long run, he maintains about the 

 same standard of living with the same amount 

 of work. The constantly shifting prices are a 

 bit confusing, but to the producer in Tzintzun- 

 tzan, inflation has not been a disastrous thing. 



Probably in few places in the world is the 

 exchange situation closer to the economist's ideal 

 of a "free market," at least as far as the locally 

 made products are concerned. Each fisherman 

 is free to fish as much as he likes, and to sell 

 his product when and where he wishes, to the 

 highest bidder. The same is true for each pot- 

 ter. He can make little or much, sell or not sell, 

 as he sees fit. There are no monopolies in any 

 of the local industries; knowledge of the skill, 

 plus a greater or lesser amount of capital, are 

 the only prerequisites to work. No one dictates 

 hours of labor and hours of rest, says who shall 

 and who shall not work, buys all of the output 

 of a given commodity, corners the market, or 

 sets prices. In a large percentage of all sales the 

 manufacturer deals directly with the consumer. 



Prices, then, are set almost entirely by 



supply and demand. In October the first 

 ducks appear, and after six duckless months, 

 many mouths are watering. The supply is lim- 

 ited, the demand great. A duck brings S0.90. 

 A month later ducks are in abundance, the edge 

 has been taken off the appetite of the Patzcua- 

 reiio, and the same duck sells for $0.50. Sale 

 of pots also is determined by the relationship 

 between the quantity offered by the sellers 

 and the ability of the buyers to pay. Approxi- 

 mate prices of given sizes are known by both 

 parties, but each pot sold is an individual trans- 

 action, and the qualities of each pot enter into 

 the final decision. The supply of pots drops 

 markedly during the rainy season, but the 

 demand drops still more sharply. Hence, the 

 level of prices is lower during this period, but 

 it is still the relationship between the supply 

 and demand which determines at precisely what 

 price sales shall be made. The market is always 

 able to absorb all the pots that are offered. If a 

 local seller at the Patzcuaro market has a few 

 left at the end of the day, these are sold at 

 reduced rates to one of the permanent merchants, 

 to be sold to the occasional purchaser during the 

 remainder of the week. 



Sales of agricultural produce work very much 

 like those of fish, ducks, and pottery. Maize is 

 sold in small quantities, often by the grower to 

 the consumer, and prices respond quickly to 

 any changes in either supply or demand. During 

 the year maize prices in Tzintzuntzan fluctuate 

 rather widely. In December 1944, right after 

 the harvest, the price was $0.70 a cuarteron of 

 4 liters. This gradually rose to $1.20 in Oc- 

 tober of 1945, just before the next harvest. Some 

 local merchants hold as much of their stocks 

 as they can until this time to take advantage of 

 the higher price. Nevertheless, there is a limit: 

 if all did this, the supply would cause the price 

 to fail to rise. The priest also exerts a steadying 

 force. The maize given him as tithes, not an 

 inconsiderable quantity, is held until prices 

 begin to soar, and is then sold at something 

 below the prevailing rates in stores, although 

 much higher than the value when given to him 

 at harvest time. In 1945 he sold very little 

 until fall, at which time the price was set at 

 $1.00. This automatically forced the local 

 merchants to sell at the same price. As soon as 

 the priest's supply was gone the merchants raised 

 their price to $1.20. 



