Mexico -- Commerce; Mexico -- Economic conditions; Mexico -- Politics and government -- 1910-1946
Of the American corporations engaged in industries a typical case is
that of the Continental Rubber Company, which has invested $5,000,000
in the guayule rubber business in north central Mexico. In 1910 the
guayule exports of Mexico were 28,000,000 pounds, worth in the market
approximately $20,000,000, and of this the Continental exported the
largest share. To-day the guayule exports are practically nothing on
the part of the companies, while the guayule shrubs on their lands are
being cut and shipped by roving bands of bandits and peons. The vast
Hacienda de Cedros, covering 2,000,000 acres, was bought by the company
nearly fifteen years ago, when its value was around $1,000,000. At the
height of the guayule business its worth was many times this sum, but
to-day, even with the chances of a future recognition of the title of
the American company, it could not be sold for its original cost. Like
all foreign properties in Mexico which have been successful, the value
of this hacienda was in the industry of the Americans who owned and
managed it--a value which cannot be estimated or set down in figures in
a damage claim.
The Mexican Banks of Issue, the backbone of the credit system of
Mexico, were owned only in small part by American interests. Their
destruction and the wiping out of the entire Mexican financial system
which was built up by Diaz, must not be forgotten in trying to get a
picture of the destruction wrought by the Mexican revolutionary bandits
and their governments. The paper money systems which scourged the
country from 1913 to 1916 cost foreigners millions of dollars which
can never be shown in figures, owing to the fluctuations of the paper
pesos. The upsetting of credit, which those who study the situation
soon find was due largely to Carranza decrees (whether justified by
circumstances or not) has set Mexico back nearly fifty years and has
depressed values of property and investment beyond any calculation but
the most careful studies by experts in finance as well as industry.
Public-domain text, read in full here on John Shaqi.
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