Chocolate.—An indigenous product, whose cultivation is principally in the hands of the Indians. The output for 1905 was 1,375 tons, at a value of 160,000 pounds sterling.

Maize.—This furnishes the chief article of food for the working classes, the tortillas. Notwithstanding the generally favourable conditions for its productions, import is still necessary in times of drought. The value of maize production for 1905 was nearly 9,000,000 pounds sterling.

Wheat.—This is grown entirely upon the cold or temperate lands of the plateau, but irrigation is necessary, and in times of drought import from the United States is necessary. In 1905 the production was 132,000 tons, valued at 2,215,000 pounds sterling. The value of Barley produced is about one-fourth of this.

Beans or Frijoles.—A staple article of diet among all classes; were produced in 1905 to the value of nearly 1,000,000 pounds sterling.

Fibres.—Henequen or Sisal hemp is one of the principal of Mexico's agricultural products, and its producers are among the wealthiest people in the country, especially in Yucatan. For the year 1905 the production was 50,250 tons, at a value of nearly 3,000,000 pounds sterling. The Ixtle fibre production gave a value of about 200,000 pounds sterling.

Pulque.—This, the national beverage of Mexico's working class, is made from maguey, and the value of its production for 1905 was about 800,000 pounds sterling.

India-rubber.—The Castilloa elastica is indigenous to Mexico, and there are large areas in the tropical part of the country where it is encountered, and some considerable planting has taken place of recent years. Some thirty or more companies are engaged in this industry, and some millions of trees have been planted, and whilst success has crowned their efforts in many cases, and the industry seems a safe one under proper conditions, it must be regarded as yet in a preliminary stage. Moreover, the industry's reputation has had to contend against frauds which have been perpetrated upon the investing public of America and Great Britain. The guayule shrub is now a further source of Mexican rubber. It is a wild shrub occupying the area of the northern plains, and was unconsidered until recently, but now a thriving industry has been established through the discovery of its rubber-bearing property by a German chemist. In this connection I may say that I sent a sample of the guayule to London from Mexico ten years ago, believing it to be of value, but my friends failed to investigate it and so lost a fortune. It is doubtful if Mexico will ever compete with the Amazonian basin of Peru and Brazil as a rubber-producing country. The output for 1905, not including guayule, was valued at 44,300 pounds sterling. It came principally from Vera Cruz and Tabasco.

Other main articles of Mexican produce are given in the following resume, which serves to show the extent of the country's agricultural resources, in their variety and order of value.

Resume OF AGRICULTURAL PRODUCE: LAST AVAILABLE RETURNS.[35] (Fractions omitted).

ARTICLE. VALUE POUNDS STERLING. Maize . . . . . . . . . . . . . . . . 8,965,000 Cotton . . . . . . . . . . . . . . . 3,340,000 Henequen (Sisal hemp) . . . . . . . . 2,933,500 Sugar-cane . . . . . . . . . . . . . 2,644,000 Wheat . . . . . . . . . . . . . . . . 2,215,200 Coffee . . . . . . . . . . . . . . . 1,508,700 Chilli peppers . . . . . . . . . . . 950,000 Frijoles (beans) . . . . . . . . . . 933,200 Pulque . . . . . . . . . . . . . . . 800,000 Tobacco . . . . . . . . . . . . . . . 606,800 Barley . . . . . . . . . . . . . . . 562,500 Rice . . . . . . . . . . . . . . . . 273,000 Mezcal (spirits) . . . . . . . . . . 256,000 Ixtle fibre . . . . . . . . . . . . . 202,000 Pease . . . . . . . . . . . . . . . . 200,000 Chocolate (cacao) . . . . . . . . . . 160,000 Chewing gum . . . . . . . . . . . . . 150,000 Tequila (spirits) . . . . . . . . . . 135,000 Other spirits . . . . . . . . . . . . 113,500 Potatoes . . . . . . . . . . . . . . 95,300 Peanuts . . . . . . . . . . . . . . . 92,800 Sweet potatoes . . . . . . . . . . . 71,000 White beans . . . . . . . . . . . . . 70,200 Vetch (alfalfa) . . . . . . . . . . 54,000 Sesame . . . . . . . . . . . . . . . 51,000 Crude india-rubber . . . . . . . . . 44,300 Yucca . . . . . . . . . . . . . . . . 17,100

[Footnote 35: Compiled from the Mexican Year Book, 1908.]

These, with other minor matters, give a total for the annual value of agricultural products, of approximately 27,500,000 pounds sterling.

Fruit Culture.—A wide range of fruits are grown and marketed throughout the different climatic regions of Mexico, and the following list of these is of much interest to horticulturists:—Alligator pears (ahuacates), ciruelas (plums), cocoanuts, apricots, apples, dates, peaches, strawberries, pomegranates, guavas, figs, limes, lemons, mamey,[36] mangoes, melons, quinces, oranges, nuts, pears, pineapples, bananas, tunas (the fruit of the nopal), grapes, zapote. The considerable trade in these will be gathered from the fact that its value yearly amounts to more than 1,000,000 pounds sterling.

[Footnote 36: This strange fruit is known as "the fruit of the Aztec kings."]

Forestry.—As has been shown, the country is rich in woods for constructional and cabinet purposes. Laws are being enacted regarding the preservation and cultivation of forests, and subsidies are to be granted in this connection to cultivators. Among the kinds of timber either natural or cultivated, in addition to those already enumerated, are:—Cypress, poplar, myrtle, balsam, Brazil-wood, cinnamon, mahogany, cherry, cedar, copal, mezquite, ebony, oak, ash, beech, osier, mulberry, orange, walnut, pine, log-wood (campeche), rosewood, spruce, willow, and numerous others bearing native names which have no equivalent in English, forming a total of more than seventy-five kinds. The value of these timbers, felled and marketed, is about 2,225,000 pounds sterling per annum, and constantly growing.

Stock-raising.—This is an important and non-speculative industry, and the owners of the cattle-ranches are generally wealthy. The industry can be conducted on a large or small scale. The principal demand is a home one, although some export to the United States takes place, with a steady output. The exports from 1901 to 1907 fluctuated between 50,000 to 200,000 head. The great plains of the north are in the hands of the large landowners, but on the coast foot-hills, where pasturage abounds, small parcels of land can be purchased. On the great plateau the droughts at times cause severe loss, and I have on one occasion observed cattle dying about the plain of thirst, and others whose lives were only saved by feeding them with pieces of succulent palm-stem. On these arid plains water is generally encountered in the subsoil in wells of not extreme depths, and these norias, as the well and windlass are termed, are seen in many places. Laws for the encouragement of stock-raising have been promulgated. The value of Mexican live-stock, including cattle, horses, mules, sheep, goats, and hogs, is given as 12,000,000 pounds sterling.

Land.—As has been stated, the great estates or haciendas are held by landowners who rarely part with any portion thereof, and as capital is not always plentiful among them, they are sometimes "land poor" with a resulting lack of development. The Mexican landed aristocracy consider it a point of honour almost, not to part with their land. The problems which have to be considered in connection with Mexican agriculture are: the establishing of irrigation works, the system of land tenure, the question of labour; whilst as regards the tropical products there exists the added element of fluctuation in foreign markets. Thus the export trade of sugar in 1905 reached a value of 600,000 pounds sterling, whilst a year later it fell to 67,000 pounds sterling, due to fluctuations in European markets: and this matter also affects coffee. Special laws concerning irrigation works have been promulgated, and Government subsidies are granted for such, and there are good openings here for enterprise and capital. An international dam is to be built on the Rio Grande, for the equitable distribution of the waters of this river for irrigation.

Lands within the area or division known as vacant or national lands can be acquired by Mexican or foreign inhabitants of the Republic by "denouncement" or claim, which entails certain legal formalities and the annual payment of a tax. This latter varies according to different states, as the land is naturally worth more in some situations than in others, and ranges from 2 pesos—a peso equals about 2s.—per hectare (or about 2-1/2 acres), in Lower California, to 27 pesos in Morelos, being 4, 5, 10, 17, 20 pesos in many states, and 100 in the Federal District. Payment for these lands can be made in Three per cent. Consolidated Debt Bonds, purchased at 70 per cent. of their nominal value and received by the Government at par.

Colonisation.—The conditions which the colonist in Mexico will encounter will have been fully learned by a general perusal of these pages. There is much room for colonists and they are welcomed. Great care must be taken to avoid the numerous land schemes which are continually sprung upon investors by land sharks and speculators, principally of American nationality. A number of people have lost their small capital through investing in ill-judged or fraudulent plantation schemes, and as to the United States, the abuse became so marked that the Government of that country at length declined to permit the mails to be used by promoters of some Mexican land schemes. I have seen the most extraordinary prospectuses, emanating from the United States, calculating and offering systems of life assurance and annuities based upon the yield of rubber of some tropical jungle, which they held in Mexico. A large number of these "buccaneers" have been operating of recent years, and bona fide companies have to bear the ill-fame so created in connection with tropical land dealings. Nevertheless, the individual often does and may obtain success and achieve profits amid the easy conditions and temperate climates of some of Mexico's fertile regions. But capital is indispensable to his success, and no emigrant should proceed there without it.

Labour.—With regard to native labour, there is not sufficient. The peon earns a low wage, but the demand is likely to increase this considerably in coming years. Mexico does not prohibit the introduction of Asiatics, but these are not a good element, and if such a policy were continued in indiscriminately it would be a vast mistake and would injure Mexico. The immigrants Mexico really wants are Europeans, and their valleys and forests are better left unworked than stuffed with the yellow race. Similar conditions may be pointed to in Peru and other countries of Spanish-America. Mexico boasts that she is the "bridge of the world's commerce" and that she looks towards Asia with equal favour as towards Europe. But the importation of Asiatics will be disastrous, and the native peones are a superior race in every respect and must rather be encouraged to multiply. As regards the labour of the white man in the tropics, Nature does not intend him to work in the same way as in northern latitudes, and there is no doubt that a great adaptability to environment will be brought about yet.

To turn now to a geographical distribution of the agricultural and other resources of the country. As has been shown throughout these chapters, Mexico embodies a wide range of varying topography, climate, and natural resources. The thirty-one States and Territories into which the Republic is divided politically fall into groups, to a certain extent physically, some of them being mainly upon the Great Plateau, whilst others occupy the Pacific or Atlantic slopes and southern region, with their lowland and tropical conditions. In some cases, however, some of the states partake of all the conditions of highland, lowland, and mountain region.

These great territories, the mere names of which are often unknown to British readers, are full of interest and variety, both as regards their natural features and the human element which inhabits them. Names which appear upon the map seem to the casual reader to embody the idea of vast uninhabited deserts or bleak mountain ranges alone. They do not come within the scope of ordinary knowledge, and the traveller entering such places is astonished to discover beautiful cities and picturesque towns, their inhabitants living in a state of advanced civilisation and engaged in thriving industries, the whole being in the nature of a revelation to his preconceived ideas of the country. We had forgotten, or never knew, that a large productive part of the North American continent lay in this cornucopia-shaped land of Mexico, or that single provinces, in some instances the size of Great Britain, sleep here under a southern sun and support a pastoral and contented population of considerable extent. Some of them are remote from main routes of travel and from the busy world outside them—remote but of great future possibilities; others are valuable centres of life and industry upon trunk lines of travel, and it will be the object of this and the following chapter to give a succinct idea of their condition and natural resources.

We will begin with the Maritime States which form the extensive Pacific littoral from the frontier with the United States to that of Guatemala—a zone of territory more than 2,000 miles long.

The great State of Sonora lies at the north-west corner of the country, forming the littoral washed by the Gulf of California on the west and bounded by the United States—Arizona—on the north. Its very considerable area of 76,620 square miles supports a population of about 222,000 inhabitants. The state is traversed longitudinally by the great range of the Western Sierra Madre, with various secondary chains, forming a rugged region, with, however, a flat zone upon the coast. All its rivers descend from the Sierra to the Gulf, the five principal of these ranging in length from 145 miles to 390 miles—the Yaqui River, which debouches at Guaymas, the principal port of the Gulf of California. The climate and temperature are very varied according to the altitude, the coast region being hot and dry, a low, arid region generally, with an occasional rainfall from a cloudless sky—a peculiarity of that zone. Temperate slopes and valleys, as we ascend, are succeeded by the cold and occasional frosts of the mountain region. As a whole the climate is healthy. The coast fisheries are important, and valuable pearls are produced from the pearl oysters here. A varied fauna and flora are encountered throughout the state, but although the soil is fertile, agriculture is backward, due to the lack of irrigation works necessary for development, in parts of the region. However, considerable quantities of sugar-cane, tobacco, cereals, fruits, maguey, &c., are raised, and cattle bred.

But mining is the great industry here, and Sonora is one of the richest parts of the earth's surface as regards minerals. The state was one of the main contributors to Spain's coffers before the War of Independence, but ruin ensued then, followed by the extraordinary regeneration of the past decade. Capitalists of the United States have invested heavily in the copper and gold mines, and exports of minerals to that country reach millions of pesos annually. There is some British capital successfully employed also in the mines. Modern copper-smelters turning out hundreds of tons of bars and large gold-quartz crushing mills are in operation. Numerous mines are being worked, and some coalfields are being exploited. The mountain region is covered with the old workings of bygone days, and the streams' margins and valleys contain hundreds of old arrastres, which attest the former activity of the Spaniards and natives. Much is being done in this field, but much more remains to be accomplished, and the prospector and the capitalist find ample scope for their efforts. In the chapter upon mining will be found the names of some of the principal enterprises in operation.

The state suffers from lack of railways, as is natural from its mountainous character, there being but one—that from Nogales, at the boundary with Arizona, to the port of Guaymas on the Gulf of California, about 255 miles long, connecting to the north of Nogales with the Southern Pacific Transcontinental Railway of the United States. There are several good roads and a telegraph system. Timber and water are plentiful in some parts of the state; in others scarce or absent. The capital of the state is Hermisillo, with a population of 11,000.

Leaving for a moment the Mexican mainland and crossing the Gulf of California, we come to the remarkable peninsula of Lower California, or Baja California. This great tongue of land, isolated almost from the rest of the Republic, extends paralleling the coast of the mainland at a distance of 60 to 100 miles therefrom, with a length of more than 900 miles and a width varying from 25 to 125 miles. Its area is 48,300 square miles, supporting a small population of about 50,000 inhabitants. On the north it is bounded by the United States—California; on the east the Gulf of California, and on the west and south by the Pacific Ocean. There are, in addition, numerous islands which fringe the coast.

A range of hills traverses the peninsula longitudinally, paralleling and near to the Gulf coast, with a highest peak of 4,230 feet above sea-level. Of granite in its highest portion, the range is of volcanic origin mainly, and gives an arid and desolate character to the land. Naturally, from its topography rivers are almost nonexistent except for a few small streams, the Colorado River, dividing it from Arizona and Sonora, being the only one of importance, and indeed this is a river of the United States, simply forming the boundary of the peninsula for a short distance.

With so limited a hydrographical system and a scarcity of rainfall, irrigation and agricultural possibilities are but limited. In the humid portion of the territory sugar-cane, tropical fruits, vines, maguey, cereals, and other products are, however, raised. There are some natural products, especially the orchilla, or Spanish moss, which grows profusely in some parts of the west coast and is gathered and used commercially for dyeing. The climate in the north is hot, but dry and more temperate towards the south. The flora, few in species, are those of the other northern states of Mexico. Among the fauna are—on the west coast—sperm whales, otters, and seals. The Gulf of California is stated to be one of the finest fishing grounds in the world: including pearl-fishing.

If Baja California is poor in species of organic life, Nature has compensated it in the mineral world, and that peninsula is considered one of the most highly mineralised parts of the North American continent. Copper, silver, and gold are among its most important products, and quicksilver, opal, sulphur, and rock-salt exist. The famous Boleo copper mine is situated in this territory, and some extensive placer gold mines are found near Ensenada. The principal towns are La Paz, the capital of the southern district, and Ensenada, of the northern.

Returning to the Mexican mainland we come to the states lying to the south of those already described. Beginning at the west, as before, we have the State of Sinaloa. This long narrow region lies between the Sierra Madre on the east and the Pacific Ocean and Gulf of California on the west, with a coast-line nearly 400 miles in length. Its area is 27,000 square miles, with a population of about 297,000 inhabitants. Topographically the state may be divided into three zones—the coast, the foothills, and the mountains; and in this it reminds the traveller of California, to which it bears resemblance in many physical and climatic respects. The coast zone consists of a well-watered and fertile strip, producing all the crops of the tropics. Next comes the foothill zone, rising gently to an elevation of 2,000 feet, and merging into a fine timbered belt alternating with extensive natural pastures. Well-watered valleys intersect this zone, capable of much cultivation, and with splendid possibilities for irrigation, cattle-raising and timber-cutting. Leaving this we enter on the more broken and mountainous country, with a heavy growth of pine and oak forest, grazing lands, and frequent streams, extending up to 4,000 or 5,000 feet elevation. This also is the rich mineral-bearing zone, whose oil deposits have justly caused the state to be considered among the foremost in the Republic in this field.

The Sierra Madre has a general and continuous elevation above sea-level throughout the great length of this state, of 8,000 to 12,000 feet, except the passes, which are crossed at much lower altitudes. The mountains give rise to numerous rivers, and the state may be considered more freely endowed with water-courses than any other in the Republic. Among the first of these is the great River Fuerte, with a large volume of water: and with ten other important streams it rises amid the snow and rain of the Sierra, flowing thence through fertile valleys to the Pacific Ocean.

The climate of Sinaloa is good; in the upper regions excellent. The coast zone is hot during the dry season, and here, in places, the malaria found on the coast of both North and South America is encountered at times. The principal agricultural products are sugar and cotton, and these are followed by the numerous fruits, vegetables, fibres, timber, and other matters common to these rich zones, at their respective elevations, including coffee and the cocoanut trees. Cattle and horse-breeding flourishes under the favourable conditions the region affords for this industry. Wild game is freely encountered, as pheasants, quail, and other birds, deer, &c. The cost of living is low, the soil fertile, and labour cheap, conditions which seem to promise growing prosperity. The mineral resources include copper, gold, silver, and other metals.

The remarkable resources of this favoured part of the country have largely remained fallow due to the lack of railways. No lines yet connect the state with the rest of the community. Recently, available passes over the Sierra which isolate the state from the railway system of the Republic, have been brought into notice, and capitalists, principally American, are engaged upon projects to build lines to the coast, traversing the state, among them being the Mexican Central Railway.

The capital city of Sinaloa is Culiacan; and the principal that of Mazatlan, the handsome and flourishing seaport, which awaits the coming of a railway. Probably a busy future awaits the development of this state.

The Territory of Tepic, formerly part of the State of Jalisco to the south, is the next of the Pacific littoral states. This small region was separated from Jalisco in 1884, on account of long rebellion against the Federal Government, and it remains as a Federal Territory, and not a state. Its coast-line is 155 miles long; its area is 10,950 square miles, and population 150,000. The climate is very hot on the coast zone and temperate in the hills. Several rivers and streams flow through it from the Sierra, some of which are navigable for short distances from its mouth. The region partakes much of the character of that to the north, already described, and of that of its parent state Jalisco, which follows. The most important agricultural product is sugar, followed by rice, maize, and coffee respectively. Mining—gold and silver—is an important industry, and numerous small native plants exist for ore-treatment. The lack of any railway communication, however, prevents the development of the resources of what is a promising territory. Various railway projects are under consideration, having as their terminus the port of San Blas, and connecting this and Tepic, the capital town, with the railway system of Mexico beyond the Sierras.

Jalisco, with its beautiful capital of Guadalajara, is the next Pacific littoral state. It is 290 miles in length, and with its extreme breadth of 268 miles it stretches across the Sierra Madre and occupies a portion of the Great Plateau. Its area is 53,800 square miles, and its population 1,200,000.

The state is exceedingly hilly, being crossed by four Cordilleras and other lesser ranges, and as we traverse it we pass from tableland to valley, desert plain to rugged spur and peak amid scenery often of a varied and picturesque character. The beautiful lake of Chapala, eighty miles long, is the equal of many of the world's pleasure resorts. Into this lake flows the Santiago river, near its headwaters, and emerging thence, crosses the state and flows through the Sierra, emptying into the Pacific at San Blas in Tepic. Various other streams flow to the ocean, crossing the coast zone and affording the means of irrigation to its arid plains. The configuration of these rivers gives rise to ravines of great depth which form remarkable topographical features. The Santiago river in a part of its course, near the state capital, forms the beautiful falls of Juanacatlan, nearly 500 feet wide, justly described as the Niagara of Mexico: elsewhere depicted.

The climate varies greatly, from the cold of the mountains to the heat of the plains, and a consequent variety in the flora and agricultural products is encountered, ranging from those of the tropical to the cold zone, from rubber and cocoa to wheat; whilst numerous kinds of timber grow in the forest areas, including those most useful to commerce. The prosperity of the state is based on its agriculture. There are more than fifty sugar mills in the state, with their corresponding area under cane cultivation, and a similar number of flour mills, whilst great quantities of molasses are produced, and textile fabrics woven. A large number of tobacco factories exist in the different towns, and, in brief, manufacturing of other articles, food, clothing, and general industries, show a considerable and rapid development.

The mining industry is less important than in other of the states, but gold, silver, and petroleum are found.

The fine city of Guadalajara, described in another chapter, is situated upon the tableland portion of the state, and so enjoys the benefit of railway connection with the main line of the Republic, by means of the Mexican Central. This line runs westwardly through the state as far as Ameca, approaching the coast at Tuxpan and Colima: only a short portion remaining to reach the seaport of San Blas, in the state of Colima, on the Pacific.

Colima is a small state, bordering on the Pacific next below Jalisco, with an area of 4,250 square miles, and population of 66,000 inhabitants. Flat near the coast, the land is mountainous in the interior. There are several rivers, the waters of which, after furnishing the means of irrigation, and water-power for various textile factories, flow to the sea. The climate, good in the north, is hot and subject to malaria upon the coast. The principal products of the state are agricultural; rice, corn, sugar-cane, and coffee being foremost among these. The soil is generally fertile; and in the northern parts the woods and canyons favour cattle-raising, in which industry various large haciendas are engaged. There are also great palm plantations, which produce cocoanut oil, whilst timber of valuable kinds exists. Some trade is carried on in the hides and skins of animals and reptiles—cattle, deer, "tigers," crocodiles, &c. Minerals exist—copper, gold, silver, but have been little prospected as yet.

The means of communication, like those of the other littoral states, are principally by sea, and the port and harbour of Manzanillo is one of the best upon the coast. But a line of railway connects this seaport with the picturesque capital of the state, Colima, surrounded by tropical vegetation and backed by its volcanoes. This line of railway is being continued to join the main system of the Republic, beyond the mountains, and but a short portion remains to be completed, as described above.



With a short littoral zone upon the Pacific, the State of Michoacan stretches far inland towards the Great Plateau. From the burning sun which beats upon its shores to the cold mountain regions on the borders of Queretaro this state has a wide range of climate and temperature, with a flora and agricultural products of corresponding diversity, such as described for its sister states of this zone. The area is about 22,600 square miles, and the population 931,000 inhabitants approximately.

The state, in certain portions, is exceedingly well-timbered, and provides material for sleepers for the railways throughout the Republic. Agriculture is the chief industry, among which coffee, wheat, sugar, and rice are prominent, whilst the wild rubber-tree which abounds on the hot zone might be made a source of profit. Mining is not neglected. High-grade silver ores are produced and sent to the smelting works at Aguascalientes, and copper mines are being actively worked, as well as gold ores. Coal beds exist also, and will be of importance to the state.

Several railways enter this territory, and give outlet to the produce of its eastern side, but none reach the coast, although such a line has long been projected, to terminate at the port of Manzanillo in Colima. The great Balsas river traverses a portion of the state, emptying thence into the Pacific Ocean. Morelia, the capital of this rich zone of Mexican territory, stands at an elevation of 6,500 feet above sea-level, and with its handsome cathedral and square is a typical city of Mexico.

In Guerrero we are reaching the narrow portion of Mexico, and the coast-line has turned more in east and west direction. Consequently the southern side of this state is bathed by the Pacific. Remote from the railways and isolated from the rest of the Republic by the great Southern Sierra Madre, Guerrero, notwithstanding its varied natural resources, has remained in a comparatively undeveloped condition.

The area of this state is 28,200 square miles, with a population of 480,000 inhabitants. The long coast-line of 310 miles affords various ports, and the famous bay of Acapulco is classed among the finest harbours in the world. Indeed, it has been placed second. The state is mountainous almost throughout its entire area, with narrow valleys between the spurs of the Sierra Madre—which approaches near to the coast here—with small plains upon the margins of the streams. The highest peaks of the Sierra reach the height of 8,300 feet and 9,250 feet. The principal river is the Balsas, which flows for a very considerable distance from the east of the Cordillera or Sierra—more than 1,200 miles from its source to its outlet in the Pacific. It is navigable for about 150 miles for launches and other small craft.

The climate varies greatly upon the coast, excessive heat being encountered, ranging thence through the temperate zone up to the exceeding cold of the mountains. The state as a whole is healthy, and the mountain breezes bracing, but the coast is subject to the usual paludismo or malarial fevers of Western America generally. Pinto, the curious mottled skin disease, is encountered in some of the valleys: as in Morelos.

Of railways there are none, the main route of travel from the City of Mexico to Acapulco having been, ever since the time of Cortes, a mountain track, the Camino Real, of difficult transit. Various projects to reach Acapulco by rail have been put forward, but none consummated so far, the nearest rail point being that of the terminus of the Mexican Central Railway on the Balsas river.

The principal products of the state attest its varied and profuse natural resources; sugar-cane, rubber, coffee, cotton, cocoa, cereals, are among these, whilst the extensive forests afford a great variety of timber. Oak grows abundantly. Mining is an important industry. The historic mines of Taxco, mentioned elsewhere, are situated in the district of that name near the picturesque town of Taxco; and the quicksilver mines of Ahuituzco, and the iron deposits of Chilpancingo, the capital, are notable occurrences of the rich mineral zone of this state. There can be no doubt that the future holds much in store commercially for Guerrero, and, indeed, recently much attention has been drawn to it as a field for enterprise, both by British and American capitalists. The state is unique in its resources of huge forests, iron and quicksilver mines, whilst it is traversed by the longest of Mexico's rivers, and possesses thousands of square miles of unexplored territory. The prehistoric ruins which are encountered in such large numbers, and the remarkable number of aboriginal tribes which inhabit it, speaking various languages, render it of much interest ethnologically.

Oaxaca, the Pacific littoral state next adjoining Guerrero, is a region of much interest, both historically and topographically. The character of the Pacific coast has changed somewhat from those of the littoral states further north, in that there are no sandy plains bordering it, for the waves of the ocean bathe the very roots of the forest trees upon parts of the shore-line of this great state.

The area of Oaxaca is 35,400 square miles, and the population numbers some 800,000 souls, of which the white and Mestizo people take 330,000, the remainder representing the various Indian tribes. Due to its varied physical configuration, the state, notwithstanding that it is within the torrid zone, is subject to a variety of climate and temperature, from the heat of the coast with its occasional paludismo and fevers to the pleasant atmosphere of the temperate altitudes, and the ever-blowing cold winds of the Cordilleran summits. Here in this region the Sierra Madre forms a "knot" and ramifies greatly, the various branches breaking up the topography, and entering into the adjoining states. The central portion of the territory forms the divortia aquarum of the continent in the narrow portion embodying the famous isthmus of Tehuantepec, separating the waters of the Atlantic system from the Pacific. The numerous rivers of Oaxaca descend variously to the Pacific Ocean and Gulf of Mexico, the latter after traversing the State of Vera Cruz.

The scenery in places is grand and rugged, the mountain slopes are covered with thick woods, and the valleys with aromatic shrubs and bright-hued flowers, rich with animal life. Huge trees tower upwards, their giant limbs developed in a way such as only these tropical regions afford.

The agricultural products are similar to those enumerated for the neighbouring maritime states—wheat, barley, maize, and textile plants are produced, as also sugar-cane, cotton, coffee. The great forests afford oak, pine, cedar, mahogany, ebony, and other timber, and excellent natural pasturage abounds for cattle-raising, which is an important industry. The rich valley of Oaxaca is a favoured region, with a mild and healthy climate. To enumerate all the plants and products of this exuberant, tropical region would be to fill pages with names, but it may be said that almost every variety of tropical and temperate zone fruit, flower, fibrous plant, cereal, vegetable, and timber abound—a flora such as could not be surpassed anywhere. There are vast tracts of land in this state, of virgin country, consisting of pure alluvial soil, waiting population to cultivate it, and the whole forms an agricultural region of much promise.

Railway construction of late years has made the state a trans-continental territory. The Tehuantepec railway, elsewhere described, has its western terminus at the port of Salina Cruz, having traversed the state, and from this important route midway across the Isthmus a line of railway runs to Oaxaca, the state capital, and so connects with the main system of the Republic. Some years ago a serious outbreak of yellow fever occurred upon the isthmus, but improving hygienic measures appear to have prevented a recurrence of this, and to have diminished the almost inevitable malaria. There are other short lines of railway in the state.



The city of Oaxaca is handsome and interesting, and enjoys a temperate climate due to its elevation of more than 5,000 feet above sea-level. It justly prides itself upon having produced some of Mexico's famous men, including Juarez and Porfirio Diaz.

Chiapas is the southernmost of the Mexican states—the last upon the Pacific, its eastern boundary forming the frontier with the neighbouring Republic of Guatemala. Following out the general structure of Mexico's littoral, the Sierra Madre parallels the Pacific Ocean here, leaving a narrow coast strip, but with a lack of good ports and navigable rivers. On the northern side, however, the Atlantic watershed, the state is traversed by navigable streams which flow to the Gulf of Campeche, notably the affluents of the Grijalva and Usumacinta, traversing the neighbouring State of Tabasco.

The country is generally high and healthy, of an undulating and picturesque character, and is one of the best-watered states of the Republic. There is no barren land, except the summits of the rocky ranges, as it forms a tropical region tempered by altitude, with corresponding fertility of soil and profuse vegetation. Forests cover the slopes and canyons, and in the valleys and on the plains an extensive flora and range of agricultural products is encountered common to this zone.

With an area of 27,250 square miles, the state supports a population of about 361,000. The capital is Tuxtla Gutierrez, which is reached most easily by navigation in low-draught boats up the Grijalva or Mezcalapa river to within about seventy miles of the city. A waggon road connects the capital with Tonala, a port on the Pacific coast, from which a short railway connects with the Tehuantepec line, and so with the general railway system. But apart from this, the principal means of communication are the navigable streams and the waggon roads.

Agriculture is the principal industry of this state, with timber-cutting, cattle-raising, and the production of salt from the deposits on the coast. In their relative order of importance are sugar-cane, coffee, chocolate, tobacco, indigo, whilst fibre, rubber, cereals, alcohol, cattle, and other products, as cedar, mahogany, &c., are also exported in increasing value. There is, however, much room for the improvement and development of agriculture in this prolific region. The famous ruins of Palenque render this state of great interest archaeologically.



CHAPTER XV NATURAL RESOURCES, AGRICULTURE, GENERAL CONDITIONS (continued)

Central and Atlantic States—Chihuahua and the Rio Grande—Mining, forests, railways—Coahuila and its resources—Nuevo Leon and its conditions—Iron, coal, railways, textile industries—Durango and its great plains and mountain peaks—Aguascalientes—Zacatecas and its mineral wealth—San Luis Potosi and its industries—Guanajuato, Queretaro and Hidalgo, and their diversified resources—Mexico and its mountains and plains—Tlaxcala—Morelos and its sugar-cane industry— The rich State of Puebla—Tamaulipas, a littoral state—The historic State of Vera Cruz, its resources, towns, and harbour—Campeche and the peninsula of Yucatan.

The states described in this chapter are those which mainly occupy: (a) The mesa central, or great plateau, and (b) the states which border upon the coast of the Gulf of Mexico, and the Caribbean Sea, forming the eastern littoral of Mexico, and consequently those nearest to European influence. Taking first the plateau states, and beginning at the north, the frontier with the United States, we have the State of Chihuahua. The area of territory embodied in this state, the largest in the Republic, is greater than that of Great Britain, having an area of some 90,000 square miles, with a population of about 330,000. The northern boundary of this state is the Rio Grande del Norte, the dividing line between it and Texas, and it occupies much of the northern portion of the great plateau, and part of the Western Sierra Madre, whose summits form its boundary. The elevation above sea-level of the plateau portion slopes from 6,000 to 3,500 feet, and the summits of the Sierra reach an altitude in some cases of 10,000 feet. The state contains vast tracts of waterless and timberless regions, forming arid and monotonous plains, and in some cases appalling deserts, but is nevertheless rich elsewhere in agricultural, forest, and grazing resources. Mining, however, is its principal industry. Manufacturing has developed well of late years, and factories for iron and steel, clothes, furniture, food-products, &c., are in active operation. In some of the mountain regions abundant water-power exists, and fine belts of timber. Agriculture is carried on both with and without irrigation, and a wide range of sub-tropical and temperate-grown foodstuffs and fruits are produced. Cattle-raising on the extensive natural pastures of the uplands is a prominent and increasing industry. The state is traversed from north to south by the Mexican Central Railway, and El Paso, on the frontier, is one of the main points of entry to the Republic from the United States. There are other shorter lines built or under construction, but further railways are required for adequate development.

The rapid increase of mining enterprise in this state has brought it into first place in the Republic. Important gold-mining establishments are in operation, and copper is being actively produced. The historic Santa Eulalia mine, elsewhere mentioned, has been again made to produce, and is a source of great wealth at present to its owners. Other details of the mines of this state are given in the chapter devoted to mining.

The capital of the state is the beautiful city of Chihuahua, whose fine public buildings, institutions, and considerable commercial movement attest the prosperity of this growing centre of Mexican civilisation. A fuller description of this capital is given in another chapter.

Coahuila, with an area of 65,000 square miles, and a population of 300,000 inhabitants, is also bounded on the north by the Rio Grande and Texas. The state consists principally of flat plains intersected by small mountain ranges. The rainfall is generally scarce, although abundant at certain seasons in the more mountainous regions, whilst the climate is very variable, being hot and unhealthy in places, although in general terms it cannot be pronounced bad. The great plateau of Mexico, of which it forms part, comes down to a low elevation towards the Rio Grande, whilst the principal mountain ranges are offshoots of the Eastern Sierra Madre. Agriculture is carried on mainly under irrigation from canals fed from the torrential streams which occur sparsely in the state, and great quantities of cotton are grown. The cotton belt and industry are most important, and the wines of Parras are famous in the country. Coahuila, in common with others of its neighbouring states, possesses some peculiar topographical conditions—portions of it consisting of plains or valleys with no hydrographic outlet, as shown in the chapter dealing with the orography of the Republic. These in some cases form fertile valleys, and, in others, sun-beat deserts, uncultivated and uninhabited.

Notwithstanding its partly sterile nature this state is a very prosperous commercial section of the country, due largely to its excellent railway system, five different lines of which traverse it. These are the Mexican Central, the International, the Northern, the National, and other lesser systems. In addition there are some fair roads, upon which the traveller may journey by diligencia or on horseback. The capital, Saltillo, with a population of about 25,000, is a pretty and interesting old Spanish town, and a valuable commercial centre. Manufacturing industries have increased rapidly of late years in this state, especially those producing textile fabrics from the native cotton. Metal and coal mining are both developing in this region; and new towns, of which Torreon is an example, are springing up. The state contains one of the principal points of entry to the Republic from the United States—Eagle Pass, or Ciudad Porfirio Diaz, on the International Railway, whilst Laredo, on the National, is near its border.

Nuevo Leon, which also borders upon the Rio Grande and Texas, is much smaller than its neighbouring states—23,750 square miles in area—but has a larger population of some 350,000 inhabitants. The state is traversed by the Eastern Sierra Madre, the highest summits of which are snow-covered. The region consists topographically of small plains and well-watered, fertile valleys. Its orography gives rise to the presence of numerous rivers and streams, all of which are upon the Atlantic watershed. These productive valleys, copious streams, and the picturesque scenery of the varied landscape, afford striking contrast with the appalling deserts which the neighbouring States of Coahuila and Chihuahua contain, and which are characteristic of the great plateau of Anahuac in the north. Cold and bracing in the mountains, the climate is temperate upon the high plains, and very hot in the low valleys; whilst the rainfall is variable.

The state is well served with railways, which largely account for its prosperity. The great trunk lines which traverse it unite it with the railway system of the United States, the ports of the coast of the Gulf of Mexico, and with the capital of the Republic. These main lines are, respectively, the International, the Mexican Central, the National, and the Monterrey and Gulf. There are in addition various smaller systems.

The capital city of the state, Monterrey, is the fourth in point of commercial importance and population in the Republic. It contains handsome buildings and numerous hotels, and its proximity to the United States has had a considerable influence on its development.



Among the state's main resources are its mineral deposits, in which coal and iron are important. The smelters and steel works at Monterrey, elsewhere mentioned in the chapter on mining, are among the most important in the country. Agriculture comes second; the extensive forests afford a remarkable variety of timber—pine, ebony, walnut, cedar, and others; whilst cattle-raising is a growing industry. And the textile industry is well represented, as is brewing and distilling. In brief, the state is an example of a prosperous and growing Mexican community, largely supplying its own wants in raw material and manufactured articles.

Durango lies upon the great plateau, but an imposing Cordillera—the Western Sierra Madre—bounds and crosses it on the west, shutting off the State of Sinaloa and the Pacific Ocean. North and east great barren sun-beat plains stretch their verdureless wastes, intersected by ranges of sterile hills, both extending into the neighbouring States of Chihuahua and Coahuila. Here in former times the savage Indians roamed. But before entering upon these plains we have traversed the fertile country upon the eastern slope of the Western Sierra, watered by the various rivers which descend therefrom—pleasing landscape and fertile soil.

The area of the state is 43,750 square miles, and its population 380,000. The city of Durango, one of the foremost of the fine Spanish-built cities of the Mexican tableland, has a population of somewhat more than 30,000 inhabitants. It stands upon a broad though barren plain at the elevation of 6,350 feet above sea-level, and its climate is subject to abrupt changes of heat and cold.

The culminating peaks of the mountain ranges of Durango are in some cases singular and beautiful. Among these may be cited the splendid granite uplift of legendary Teyra,[37] which rises to an elevation of 9,240 feet above sea-level. Its colossal crest towers upwards from the tableland, riveting the attention of the traveller from all points of the compass by its majesty. From this one gets a magnificent view over a vast expanse of country. It does not, however, reach the perpetual snow-line, although this is passed by Tarahumara of the Sierra Madre. This remarkable peak shows the flora of three zones—the hot, with bananas and other fruits growing at the base of the mountain; the temperate, where pines and other flora of this zone flourish; and the simple cryptogamous plant life of an arctic temperature, cooled by the almost perpetual snow above it upon the mountain summit.

[Footnote 37: Visited by the Author.]

The plains of Durango, in common with some of those of its native states, present the curious physical structure described in another chapter—of having no hydrographic outlet. The rivers which flow eastwardly from the Sierra, form lakes whose only means of exhaustion is by evaporation. Of this nature is the great arid tract known as the Bolson of Mapimi. The Mexican Nile, the River Nazas, the principal stream of the state traverses this, and affords the means of irrigation to the numerous cotton plantations of the region. These, which constitute an important industry, are described in the chapter on agriculture.

The climate varies much according to the topography of the region, being temperate or hot according to the elevation. In addition to the cotton various agricultural products are raised, whilst the mountain uplands yield pine, oak, cedar, ash, and other classes of timber. The fauna includes leopards, bears, coyotes, peccaries, deer, eagles, cranes, pheasants, &c.

The mining industry in Durango is important. Gold and silver are freely found and worked. The great hill of iron has been described elsewhere in these pages. Copper is abundant; tin, cinnabar, sulphur, and coal exist. The numerous mining districts in this state have produced much wealth in the past, and mines and reduction works are encountered strewn over the mountain regions. The great Penoles[38] mining and smelting enterprise at Mapimi is one of the most important in the country. The historic Avino silver mines are worked by British capital. Other numerous modern mining establishments are in operation, which have been brought to much perfection by foreign capital and skill.

[Footnote 38: Visited by the Author.]

Railways are fairly well developed in this state; the International and the Central being those which traverse it.

Zacatecas owes its fame and prosperity in the first instance to its mines, which have been worked from the year 1546 to the present day. The state is situated on the great plateau in the centre of the Republic, at an average elevation above sea-level of 7,700 feet, but embodying a diversified topographical character and climate. Cattle, cereals, and agricultural products generally, are raised to a certain extent. With an area of 25,300 square miles it has a population of about 500,000. The famous capital city of Zacatecas, as described elsewhere, is served by the Mexican Central Railway, which traverses the state; as does also the National. A large number of mines are being worked in this state, and new capital is rapidly coming in. Foremost among British enterprises are the important mines and smelting works of the Mazapil Copper Company, at Concepcion del Oro. The field of minerals is a vast one, and offers inducement to foreign capital. Gold, silver, copper, lead, and quicksilver are all produced, but more capital is required. Remarkable as it may seem, the high region which composes this state produces rubber—the guayule, a plant which grows wild in profusion in various parts of the region, and which is in much demand.

The little state of Aguascalientes lies to the south of the above region, with an area of somewhat less than 3,000 square miles and a population of 105,000. Its principal source of life is agricultural, but the mineral industry is important. The capital city stands at an elevation above sea-level of 6,100 feet, and the hot-springs of the region give rise to the name of the state and city; which may be described as healthy and attractive. It is traversed by the Mexican Central Railway.

San Luis Potosi is a state of much promise in minerals and agriculture, but has been kept backward until recently from want of foreign capital to exploit its natural resources. In former times it was the third producer of bullion of the Mexican states for Spain, and it shows signs of regaining its former prestige. The valleys provide numerous agricultural products; the mountains contain, in certain places, timber, and the sterile uplands maguey. To the east rises the Mesa range of the Eastern Sierra Madre, and the state generally occupies the most elevated part of the great plateau, giving rise to the coldest climate in the country. The area is 25,400 square miles, and of its population of about 580,000 souls more than 60,000 form the inhabitants of the handsome capital—San Luis Potosi. This city is connected with the Port of Tampico on the Gulf of Mexico, by the Mexican Central Railway, which descends to the coast by an exceedingly picturesque and interesting route. The Mexican National Railway also traverses the state, connecting it with the City of Mexico. The important ore smelting works of the Metalurgica Mexicana Company are situated here, and have proved a stimulus to the works of the great mineral resources of the state. The famous Catorce mining district is situated in this state, and some well-equipped modern installations exist here. The rich Huasteca district, and other regions, form an alluring field for capitalists.

Guanajuato, Queretaro, and Hidalgo form a group of smaller states which have held a prominent place in the earlier history of Mexico, due principally to the extraordinary production of silver and gold from their mines, which has made the names of these famous the world over. These have been touched upon in the chapters devoted to mining, and the capital cities spoken of elsewhere. Most of the important mines are again producing mainly under modern methods, and the value of the output for the State of Guanajuato last year is calculated as fourteen million dollars.

The diversified character of the topography and consequently of the climate of this region, forming the southern part of the great plateau, gives rise to much variety of nature's resources and agricultural products, from sugar-cane to cereals, and indeed agriculture in some cases is the staple industry. Numerous streams permit the irrigation of the fertile valleys which abound in this part of Mexico. In some cases we may journey in a few hours from the tropical lowlands to the regions of pine and oak, and the cold and cloudy climate of the high mining districts. Great plains and plantations of maguey exist upon the tableland for the making of pulque, Hidalgo alone having 129 haciendas devoted to this industry. In some portions of these states the scenery is wild and picturesque in the extreme, varying from the soft and undulating to the stupendous. The rivers generally belong to the Atlantic watershed, flowing through the Eastern Sierra Madre to the Gulf of Mexico, debouching at Tampico as the great Panuco river.

The State of Guanajuato, with an area of about 11,000 square miles, supports one of the largest of populations of any state, reaching to 1,065,000 inhabitants, and this is increasing, due to the growing industries of the region. Queretaro, with an area and population of 4,500 square miles and 235,000 inhabitants, is one of the smallest of the states. Its capital city, of the same name, is of much interest historically, for here Maximilian fell. Some important industries are carried on, among them being the largest textile factory in the Republic, the great "Hercules" mills. The famous "Doctor" mine, vast producer in past history, is one of the remarkable features of this state, whilst in the adjoining state of Hidalgo are the great mines and ore-treating haciendas near the capital city, Pachuca. Real del Monte with its remarkable metallurgical achievements is a byeword in the annals of silver. Cold and cloudy, these high regions—Pachuca is 8,000 feet above the level of the sea—are in marked contrast to the warm valleys which, below the belt of oak and pines upon the mountain slopes, are reached in our downward journey. The area of this very diversified state is 85,900 square miles, and its population some 605,000 souls. The Mexican Central and National Railways serve these three states.

The State of Mexico comprises a rich and interesting region. It is the seat of the capital, the famous City of Mexico. With the little adjoining State of Tlaxcala it was the home of the Aztec and other republics or oligarchies of prehispanic days. Here is the classic lake of Texcoco, and on the south of the valley the famous peaks which rise beyond the perpetual snow-line—Popocatepetl, Ixtaccihuatl, and the Nevado of Toluca—rear their gleaming crests. In this region Nature has been profuse with her resources—a rich and varied flora and astonishing wealth of gold and silver. Here the mines of El Oro give up a stream of gold to foreign pockets—principally British—the result of Anglo-Saxon enterprise of recent years.

The state is mountainous, with the great culminating peaks before mentioned; but extensive plains and fertile valleys occupy much of its area, with grassy uplands in the higher regions. The Lerma river is the chief watercourse, born near the snows of Toluca, and after long winding over several states it traverses the Western Sierra and falls into the Pacific Ocean. The cold plains and temperate zone produce abundant supplies of maguey and cereals; oak and pine and cedar grow freely in the mountain timber belts, whilst the list of agricultural products and fruits, from sugar-cane and tobacco upwards, almost exhausts the flora of the country. Water-power is a valuable asset of the state, the numerous streams furnishing power for the plant of numerous manufactories—woollen, cotton, electric light, flour mills, and others. The area of the state is 8,950 square miles, with a population of nearly a million inhabitants. The fine haciendas which dot the state, and the important industries and cities, form a rich and important centre of Mexican civilisation. All the main lines of railway connect this state with the rest of the Republic.

The little State of Tlaxcala, which bounds that of Mexico on the east, has an area of 1,700 square miles and population of 173,000—the smallest of the political divisions of the Republic. Above the clay and sand plains of this state rises the beautiful Malinche peak to a height of 14,720 feet above sea-level, crowned generally with snow, which fancy has pictured in the form of a woman. The principal agricultural products are maguey and cereals, from which a large revenue is derived by the haciendas devoted to the industry. The city of Tlaxcala was the site of memorable scenes of the conquest of Mexico, and its brave inhabitants were the fierce foes first, and the faithful allies afterwards, of Cortes and his Spaniards, as has been described in the historical portion of these pages. The ancient ramparts, built by the Tlaxcalans, existed up to the seventeenth century.

Morelos is a small state lying south of Mexico, with an area somewhat less than 2,000 square miles and a population of 160,000. This state might almost be termed a vast sugar-cane plantation, as the greater part of its cultivable territory is given over to this branch of agriculture—grown under irrigation principally from the rivers which flow from the perpetual snow-caps of Popocatepetl and Ixtaccihuatl. Correspondingly, the principal industry is that of sugar and rum-making, for which industry there exist numerous haciendas, equipped in most cases with modern machinery. The historical and archaeological associations and remains of the state are of much interest. Cuernavaca, the picturesque capital, which is the centre of these, is much of a favourite health resort since it became connected by railway with the City of Mexico. The Franciscan church carries us back to 1539, and the palace of Cortes and the gardens of Maximilian bring into recollection episodes of the history of this romantic region of the Pacific slope. The climate invites to dalliance, and the varied landscape—canyon, forest, and stream—open out in their pleasurable variety as we make our way westward. The small, quaint, Spanish-built towns with their Indian names, such as Tetecala,[39] Tequezquitengo, and others, seem to carry us back to the Middle Ages. This latter village was inundated and lost from the waters employed in the irrigation of the valleys. The various streams which cross the state have their outlet to the great Balsas river, which drains the eastern slope of the Sierra Madre, falling thence into the Pacific Ocean. The Mexican Central and the Interoceanic Railways connect the chief towns of Morelos with the City of Mexico, traversing the interesting and rugged routes of this region.

[Footnote 39: Visited by the Author.]

Puebla is one of the most important of the Mexican states—both in natural resources and in its general flourishing condition. It occupies the region south of the great tableland, extending beyond this, however, both to the Atlantic and Pacific watersheds, its central part forming the divortia aquarum of the continent in this portion, its rivers on the west running to the Pacific Ocean and those on the east to the Gulf of Mexico through the State of Vera Cruz. In the northern part of this region the mountains form a scattered group, unlike the Cordilleras of the Sierra Madre of other parts of Mexico. The topography and scenery are rugged and picturesque. The northern mountains include the Sierra Nevada, which form the boundary of the valley of Mexico and the great plateau. Here rise the beautiful snow-capped peaks which are so prominent a feature of this part of Mexico—Popocatepetl (17,300 feet), Ixtaccihuatl (15,700 feet), Malintzin (13,462 feet), and others, on the boundary with the States of Puebla and Mexico. Orizaba (18,250 feet) and the Cofre de Perote (13,400 feet), on the border of the State of Vera Cruz, descend to high-spreading tablelands, watered only by the snows of these mountains, as they are riverless. The beautiful valley wherein the capital city of Puebla is situated, some short distance to the east of Popocatepetl and its sister peak, is, however, traversed by the remarkable river Atoyac which, rising beyond the borders of the state, forms the headwaters of the great Balsas river, debouching, after a trajectory of more than four hundred miles, into the Pacific.



The area of this state is 12,200 square miles, sustaining more than a million inhabitants. Agriculture, and industries and manufacture depending thereon are the source of wealth and property; mining occupies a relatively small place, although minerals abound, and onyx and coal are famous among them. The valley of Puebla draws its varied sources of life largely from the Atoyac river, whose hydrographic basin forms a fertile region probably superior to any in the Republic. Level tracts of land and undulating valleys are irrigated freely from this river, giving huge crops of cereals, and numerous mills producing textile fabrics are actuated by the water-power it affords. The slopes of the mountains to the north are covered with forests whose stores of timber are a little-exploited source of wealth at present. The southerly region forms a tropical zone where the products corresponding to its climate abound—as cotton, coffee, sugar-cane, and others. Here the state extends to the borders of Guerrero and Oaxaca.

The city of Puebla is the second in the Republic and contains nearly 95,000 inhabitants. It is an important seat of Mexican civilisation, of which the Republic is justly proud and, indeed, its state of prosperity and consequent advanced civilisation are noteworthy. The productions of the numerous industries and factories in the district are exported to all the main centres of the Republic, especially the textile fabrics, and also to Central and South American countries. The central portion of the state is traversed by several main lines of railway, as the International and the Mexico and Vera Cruz, whilst the Mexican Southern unites it with Oaxaca and the Tehuantepec Railway. The archaeological remains of Cholula—the prehistoric ruins elsewhere described—lend much interest to the diversified and beautiful State of Puebla.

* * * * *

We have now to consider the Atlantic, or Mexican Gulf littoral States.

Tamaulipas is one of the frontier states bordering upon the United States; its northern frontier adjoining Texas, from which it is divided by the Rio Grande or Bravo. On its eastern side it is washed by the Gulf of Mexico, its littoral extending along the Gulf for more than 260 miles—from the estuary of the Rio Grande or Bravo, to that of the Panuco river at Tampico. Topographically, the state consists of the coast plains, occupying about two-thirds of its area, and the mountainous or hilly region of the eastern slope of the Eastern Sierra Madre, of the remainder. The area is 29,340 square miles, and the population 190,000. The rivers of the state are numerous, notably the Conchas, the Soto la Marina, and the Tamesi, all falling into the Gulf of Mexico; and great lagoons—as the Laguna Madre, 125 miles long—border upon the coast, separated from the sea, in some places only by a ridge of narrow sand-dunes. The Laguna Madre has become dried up, however, due to the silting up of its channels.

The climate varies much, the coast being hot and in places unhealthy, subject to the diseases peculiar to those regions, although it has been found that drainage and sanitary measures have worked a remarkable change at the formerly unhealthy port of Tampico. The mountainous regions of the Sierra Madre bound the state on the west, with a cool climate and temperate uplands, and the climate as a whole is considered superior to that of Coahuila.

The development of this state has not kept pace with that of its neighbours, due to lack of railways, capital, and labour. But it is a region of rich and varied natural resources, whether in minerals or agriculture. The beautiful valleys of the temperate region are capable of a greatly extended agricultural development, and valuable forests extend over both mountains and plain-land. The vegetation of the region is very varied. All the tropical and some of the temperate zone fruits are raised, as well as corn, coffee, and chocolate, whilst india-rubber is a product of the state. Of timber a great variety exists, including oak, cedar, mahogany, pine, beech, ebony, &c. An important industry is the growing of fibre-producing plants, especially the henequen and ixtle, and there are many haciendas engaged in this remunerative branch of agriculture. Active irrigation work is required in this state, from the numerous streams which cross it, as agriculture must be largely dependent upon this, and there is no doubt that this will be accomplished as more attention is drawn to the resources of the region and capital attracted thereto. Mining is carried on to some extent, especially in copper, whilst the petroleum and asphalt deposits are a source of wealth to their owners. But, so far, mining is little developed and, although the possibilities for the production of minerals are generally little known, there is no doubt that they are extensive. The capital of the state is Victoria, with a population of some 10,000 inhabitants. It is connected with the seaport of Tampico, on the Gulf of Mexico—the main seaport of the state and, indeed, the second in importance upon the coast—by the Monterrey and Mexican Gulf Railway. Another of the principal gateways of the Republic exists in this state—that of the frontier town of Laredo, at which point the Mexican National Railway crosses the Rio Grande into Texas. With its little-known regions and considerable possibilities, the State of Tamaulipas, although somewhat off the main routes of travel, is a region of much interest. It offers some attraction to tourists in its sea-bathing and Tarpon fishing upon the coast.

Vera Cruz, the famous and historical state of the Gulf of Mexico, the gateway of the Conquistadores and the principal route of entry of the European traveller of to-day, lies along the shore of Mexico for a length of 435 miles. It extends from the Panuco river at Tampico, curving round the Gulf shore to the south and east, past the Isthmus of Tehuantepec, to the border of Chiapas and Tabasco. Its area is 29,000 square miles, and its population falls somewhat short of a million inhabitants.

The topography of the state is that remarkable one typical of the physical structure of Mexico—of hot coast plains, temperate higher regions, and the cold uplands of the Sierra Madre mountains and the great tableland of the interior. The rugged character for which this region is famous lies beyond the coast plains, which, except in a few places, are sandy and undulating, but, as elevation is gained, these give place to a region of tropical vegetation so exuberant as is encountered in few other regions.



The state is well watered, there being forty or more rivers and streams of importance, some of them being navigable for a distance of thirty-five miles from their mouths for deep-draught ships, others forming means of irrigation and motive power throughout the region, whilst numerous lakes and lagoons exist. Among the navigable rivers are those of Coatzacoalcos, San Juan, Tonto, Papaloapam, Tuxpam, Casones. The scenery is extremely picturesque in places, changing to the stupendous as the mountains are approached. Profound valleys, covered with a wealth of tropical vegetation, or crops, are seen lying thousands of feet below the sheer descent of the abrupt slopes, up which the railway ascends to the great plateau of Anahuac—views such as command the admiration of the traveller.

The natural resources of the state are varied and plentiful to a remarkable degree. Cotton, sugar, tobacco, coffee, rubber are among the products of this rich region, a source of wealth to the state, for these articles find ready export, due to their superior quality. The forest timbers are plentiful and varied—cedar, mahogany, pine, ebony, walnut, and dyewoods are products of these immense forests. The export of cattle, both to other states and abroad, is important. Manufactories for textile goods, tobacco, sugar, and other products, abound. As for mining, it is entirely overshadowed by the great agricultural wealth, and minerals are scarcely exploited, so far, although iron, copper, silver, and gold exist, whilst the petroleum deposits will doubtless form a source of wealth. The state is traversed by the Tehuantepec railway, elsewhere described.

The city of Vera Cruz, although it does not occupy the exact site of the landing of the Conquistadores, is nevertheless of historic fame, since its site was changed In 1599. But it acquired not only fame, but an evil reputation for its insalubrity, the dreaded yellow fever being its most persistent scourge. The scientific work undertaken of recent years, however, in combating this, and in the destruction of mosquito larvae, show that fever and malaria can be eliminated on this coast, and to-day the port and city are not unhealthy; and the principal scavengers are no longer the zopilotes, although these birds flap their wings in the city streets, in the faces of the inhabitants. Vera Cruz is connected with the City of Mexico by the famous old Mexican Railway, whose construction was begun half a century ago, and by the Interoceanic. In sight of the traveller as he ascends from the coast is Orizaba, one of Mexico's highest snow-crowned peaks, visible indeed from among the waves of the stormy Gulf. This was the way the Spaniards came, and is described elsewhere in these pages. The new port works of Vera Cruz is a solid engineering structure, built at a cost of 4,000,000 pounds sterling, and renders the harbour safe for shipping.



Still following the littoral of the Mexican Gulf, or rather the Gulf of Campeche, are the small States of Tabasco and Campeche, forming part of the frontier with the neighbouring Republic of Guatemala. The area of the first is 10,100 square miles, and population of about 175,000 inhabitants. This state possesses two of the principal navigable rivers of Mexico, the Grijalva, named after the first European to set foot in Mexico, and the Usumacinta, navigable for 180 and 77 miles, respectively. The flat topographical character of the state gives rise to various lakes and coast lagoons, but the anchoring grounds for ships are not generally in the nature of good harbours. The climate is hot, but often tempered by the winds blowing from the Gulf. Malaria is prevalent in places, but yellow fever has diminished or disappeared. The principal articles of export are the dye woods and timber, hides, coffee, tobacco, and rubber. Cocoa and sugar-cane are among its leading agricultural products. There is but one railway in this somewhat isolated state, its means of communication being principally by water and road. The capital, San Juan Bautista, is situated upon the Grijalva river.

Campeche has an area of 18,000 square miles and a population of some 87,000 inhabitants, and its capital city of the same name, lying upon the coast, 18,000. This is also the principal port, and it is united by a railway to Merida and Progreso, in Yucatan. The principal rivers are navigable in the rainy season and for small boats generally. The soil is fertile and agriculture is the main industry, but is kept backward from lack of sufficient labour and means of communication. Attention is being turned to the cultivation of henequen, which has given favourable results in the neighbouring state of Yucatan. Irrigation is necessary for the crops in this region. The principal products, however, are the dyewoods—famous for their quality—and timber, including cedar and mahogany; sugar-cane, maize, and rice are produced, and the inevitable chicle—chewing gum—for export to New York, whilst the numerous fruits of the tropical zone are freely raised. The great tracts of virgin forests and unutilised resources of the state call for foreign capital, and the Americans are those who have responded principally. Chinese and Korean labour are employed to a certain extent, as well as Jamaica negroes. Some of the plantations have light railway lines, and several steam railways are projected or under construction. Shipbuilding is an old-established industry of this coast, and the first vessel to carry the Mexican flag to Europe was constructed, it is stated, at Campeche.

The State of Yucatan stretches over the greater part of the area of this remarkable peninsula, from which it takes its name. With its eastern part—the region known as the Territory of Quintana Roo—it is a neighbour of the British Empire, bordering as it does upon British Honduras, or Belize. To the south it adjoins the Republic of Guatemala. Its area is 35,200 square miles, with a population of about 300,000 inhabitants. Similar in character to the rest of the peninsula this state consists of one vast plain, of small elevation above the level of the sea, its flat topography being relieved only by a low range of hills towards the centre, running northwards into Campeche, whose greatest altitude does not reach 3,000 feet.

The capital city, Merida, lies in the north-west part of the state. This is a vast flat region of dreary aspect, unwatered by rivers or streams, arid and dry, stretching to the Bay of Campeche on the one hand, and the great Terminos lagoon. This desolate region, nevertheless, affords the main source of wealth of the state, and that for which it has become famous, the henequen, or Sisal hemp, the valuable fibre-producing plant which grows there in millions. In this region are the curious wells, or natural ground-caves of water, which excite the notice of the traveller, and which appear to be connected with underground streams.

Other agricultural products are sugar-cane and cereals, whilst there are extensive woods of valuable timber, bordering upon Guatemala and British Honduras, including the famous dye-woods, and other classes for constructional purposes. In the southern part of the state also, there is a great zone of fertile land, crossed by various streams and rivers of small hydrographic importance.

The coast-line of the Peninsula of Yucatan is more than 600 miles in length, extending round three sides of the peninsula. The climate of the eastern coast is rendered torrid by the heat of the Gulf Stream, which sweeps between it and the island of Cuba. The principal port, Progreso, is an open roadstead where no shelter is obtained, the old abandoned port of Sisal being superior. Some score of miles off the north-east coast is the island of Cozumel, where Cortes first landed on his voyage of the Conquest. Yucatan contains the remarkable ruins of the Maya civilisation—a field of great research. These splendid remains of prehispanic architecture are of the utmost interest and beauty, and have received much attention from famous archaeologists. The great forests of the state, extending over a large area of territory, are the habitat of a varied fauna, including the panther, the tapir, wild boars, boa constrictor, crocodile, and other ferocious kinds, as well as deer, and a variety of bright-plumaged birds. Yucatan is without minerals, its geological formation being of the younger sedimentary rocks.

The Territory of Quintana Roo, before mentioned, was separated from Yucatan, due to its long possession by the Maya Indian tribes, who, however, have now been overcome, and are under peaceful control. The population is only about 3,000. The topographical formation is similar to that of Yucatan, great calcareous, undulating plains of recent geological times. The climate is hot, tempered at times by the sea breezes and the heavy rains. There are no streams, except the Hondo river, flowing into British Honduras, but the land is watered to a certain extent by the cenotes, as the rain-water deposits in the calcareous rock are termed, which supposedly are connected with subterranean streams. This territory is the home of the descendants of the Mayas, some of the most intelligent of Mexico's aboriginal people to-day, and they long resisted, and until a few years ago, the control of the Mexican Government. The territory borders upon British Honduras—Belize—and the supplying of arms by British traders to the insurrectionary people a few years ago caused much trouble to the Mexican Government and became the matter of diplomatic discussion. All this is now duly settled, and the region is in a tranquil state.

The remarkable variety of natural products and conditions of the states forming the Federal Republic are thus shown. Each state has its proper machinery of government, civil control, and education, and each is working out its own destiny, slowly, but surely, in conjunction with its neighbours of the Federation.



CHAPTER XVI MEXICAN FINANCE, INDUSTRIES, AND RAILWAYS

Financial rise of Mexico—Tendencies toward restriction against foreigners—National control of railways—Successful financial administration—Favourable budgets—Good trade conditions—Foreign liabilities—Character of exports and imports—Commerce with foreign nations—Banks and currency—Principal industries—Manufacturing conditions—Labour, water-power, and electric installations—Textile industry, tobacco, iron and steel, paper, breweries, etc.—Railways— The Mexican Railway—The Mexican Central Railway—The National Railroad—The Interoceanic—Governmental consolidation—The Tehuantepec Railway—Port of Salina Cruz—Other railway systems.

The rise of Mexico, within a few years, from the position of a poor and somewhat discredited state to that of a nation with a regular budget surplus, and a credit in European markets which provides her with loans without other security than her good faith, has been very generally acclaimed as the beginning of a new era in the Spanish-American world.

Previous to the year 1893 it had never happened in the history of Mexico that the nation's income exceeded its expenditure. The country had always spent more than it earned, and year after year its budget showed heavy deficits, with an ever-menacing condition resulting thereon. But that unfortunate state belongs now to past history, and since the weathering of the storm of the silver crisis of 1894 Mexico has had no relapse, and the budget has shown an unbroken and increasing balance in favour of the Treasury. This satisfactory financial condition is partly consequent upon the general world-march of commerce and the era of progress which has dawned for the Spanish-American world generally. It was time that such should occur! But, apart from these general causes, or rather closely allied thereto, as regards Mexico, has been the efficient political administration which the country has enjoyed, and the able financial control of its resources and revenue. The name of the presiding genius of the financial department of Mexico's administration has become well known in financial circles connected with Mexico—Senor Limautour—and this chapter would be incomplete if it were not recorded. As Secretary of Hacienda, or Department of Finance, this cautious and able statesman has been the instrument for his country's financial progress, for the stability of Mexico's internal government has, of course, impulsed the advent of foreign capital into the country, in the form of investments in railway, mining, and industrial enterprise.

Mexico's credit and prosperity thus satisfactorily established, the country is enabled to move with a certain spirit of independence as regards its foreign financial transactions. The last year or so have shown a marked tendency on the part of the Government to consider their position as regards foreign capitalists, and to act to the end of obtaining greater benefits for the nation from the exploitation of the country's resources, which has principally been carried on by foreign capital. No one who views the matter disinterestedly will see cause for complaint in this attitude. It is a poor philosophy which would permit the mines, fields, and railways of a country to be drained of their wealth only for the benefit of foreigners. On the other hand, of course, railways and mines would never have been opened up without foreign capital, and the distinction between national philosophy, and ingratitude, must always be an important consideration for Spanish-American countries.

Mexico, however, does not discourage foreign capital, but only seeks a proper control of her natural wealth. In earlier years the country was the happy hunting-ground of hordes of concession hunters, speculators, and financial jugglers, whose main object was to get something for nothing, and sell it for a round sum in Europe or America, and they were often successful. At that time Mexico wanted her railways built at any cost, but the situation has changed now, although not in a way to discourage reputable investors. This tendency to restriction has shown itself mainly in two directions: that of the recent consolidation of the railway systems, whose integrity was menaced by the attempted operations of certain American trusts and financial groups; and, later, by commercial conditions unfavourable to traffic returns. This brought about the decision of the State to acquire a controlling interest and voice in the ownership of the main railway lines, and this has been carried out by means of the purchase of stock in two of these lines, the Mexican National and Mexican Central Railways. These railways are two great arteries of travel, as elsewhere described, connecting the City of Mexico with the United States. This action of the Mexican Government, which is somewhat of a novel procedure, and an attempt to carry out the problem of State co-operation with private enterprise, is conceded to be advantageous to the interests of the two combined companies to a large extent, whilst it secures to the country the working of the lines in the interest of the country, and eliminates the possible element of "rate-war" competition. On the other hand, it is to be recollected that State ownership and working of railways is generally disastrous, especially in North or South America, where State enterprise tends to become a corrupt political machine. But it is far from probable that this condition will be brought about in this instance, and the operation will serve rather as an object lesson.

Another restrictive tendency is shown in the bringing forward, recently, of a Bill for the enacting of a law that mining property should only be acquirable by citizens of the Republic, and this, although it has been shelved, is likely to be brought forward in future years. Such matters are inevitable in the course of time, and the policy of inducing foreign capital to enter a new country, which is absolutely necessary to its well-being, has naturally to undergo some modification when such a country reaches a certain stage of development.

The present stable condition of Mexican Government finance is shown by the budget statements for the fiscal year 1908-1909, as presented by the Minister of Finance. The figures are as follows, in round numbers:—

Mex. Dols. Estimated normal revenue . . . . . . . 103,385,000 Estimated normal expenditure . . . . . 103,204,000 —————- 181,000 =======

As before stated, an annual surplus has been forthcoming since the year 1895, with some fluctuations. Out of these increasing surpluses large sums have been spent upon important public works, which have been elements for the commercial development of the country and its growing trade. In addition to this, foreign loans have been contracted for the completion of such public works. The loan of 1905, for the sum of 40 million dollars gold, was placed with bankers of London, New York, Berlin, and Amsterdam, the bonds being purchased at 89 per cent. of their nominal value, free of commission, carrying only 4 per cent. interest. It is interesting to compare this operation with Mexico's first loan, consummated in London in 1823, for 16 million pesos, which was bought by the contracting firm at 50 per cent. But it is to be recollected that the Holy Alliance was at work then, and that the belief was rampant that Spain would recover her lost colonies![40]

[Footnote 40: See page 125.]

If the position of Mexico's treasury is satisfactory, that of the general business of the nation is also upon an excellent footing, as shown by the returns for imports and exports. Those for the financial year ending June, 1907, are as follows:—

pounds sterling Total imports . . . . . . . . . . . 23,336,300 Total exports . . . . . . . . . . . 24,801,800 ————— Balance in favour of exports . . . 1,465,500 =========

Whilst the figures quoted in these and the following tables for the fiscal year of 1907 may be looked upon as showing the normal condition and growth, the figures for 1908 have shown a considerable decrease, amounting to more than a million sterling on the imports, and more than half a million in the exports. In both cases, however, they are in excess of the amounts for the year 1906. The principal decrease is in the trade with the United States, and in fact, the fluctuation has been brought about by the monetary stringency that has prevailed in Mexico following upon the financial crisis in the United States, which has affected business to a considerable extent. It must take a year or so for these conditions to right themselves, but they are far from being permanent.

It is to be recollected that Mexico is called upon to pay large sums annually to the foreign holders of her National Debt, which calls for 2,400,000 pounds sterling, and to the railway bondholders, in 2,500,000 pounds sterling, and other amounts paid out as dividends by the banks to various private enterprises, a total which, of course, largely exceeds the trade balance due to exports, and which is covered by the investment of foreign capital in the country.

The character and value of the imported articles for the year and sum above given, which are instructive as showing the present wants of Mexico, are shown in the following table, year 1906-1907:—

pounds sterling Animal substances . . . . . . . . . 1,923,400 Vegetable substances . . . . . . . . 3,173,100 Mineral substances . . . . . . . . . 8,287,200 Textile products . . . . . . . . . . 2,650,000 Chemical products . . . . . . . . . 950,700 Wines and liquors . . . . . . . . . 729,600 Paper, etc. . . . . . . . . . . . . 602,700 Machinery, etc. . . . . . . . . . . 2,773,600 Vehicles . . . . . . . . . . . . . . 900,000 Arms, explosives . . . . . . . . . . 390,800 Miscellaneous . . . . . . . . . . . 955,400 ————- 23,336,300 ==========

The exports for the similar period, as detailed in the following table, with their values, show the wide range of Mexican products which are purchased by other countries. Fractions are omitted:

Mineral Products. pounds sterling Mexican gold coin . . . . . . . . . 3,000 Foreign gold coin . . . . . . . . . 1,000 Gold bullion . . . . . . . . . . . . 1,890,600 Other gold . . . . . . . . . . . . . 492,800 Mexican silver coin . . . . . . . . 2,452,200 Foreign silver coin . . . . . . . . 16,800 Silver bullion . . . . . . . . . . . 6,319,100 Other silver . . . . . . . . . . . . 1,986,800 Copper . . . . . . . . . . . . . . . 2,801,800 Lead . . . . . . . . . . . . . . . . 364,500 Zinc . . . . . . . . . . . . . . . . 201,000 Antimony . . . . . . . . . . . . . . 142,700 Other mineral products . . . . . . . 119,300 ————- Total mineral products . . . . . . 16,246,000 ==========

Vegetable Products. pounds sterling Henequen (hemp) . . . . . . . . . 3,144,000 Coffee . . . . . . . . . . . . . . . 723,700 India-rubber and guayule . . . . . 667,900 Pease . . . . . . . . . . . . . . . 408,500 Ixtle fibre . . . . . . . . . . . . 381,300 Vanilla . . . . . . . . . . . . . . 266,200 Timber . . . . . . . . . . . . . . . 217,000 Chicle (chewing gum) . . . . . . . 214,500 Tobacco, raw . . . . . . . . . . . . 189,500 Broom root . . . . . . . . . . . . . 183,100 Frijol beans . . . . . . . . . . . . 86,370 Dyewood . . . . . . . . . . . . . . 74,000 Fresh fruits . . . . . . . . . . . . 34,000 Mulberry wood . . . . . . . . . . . 9,500 Guayule, raw . . . . . . . . . . . 6,100 ————- With other vegetable products, giving a total of . . . . . . . . . 7,181,000 =========

Animal Products. pounds sterling Cattle . . . . . . . . . . . . . . . 156,000 Hides and skins . . . . . . . . . . 887,500 Other matters . . . . . . . . . . . 76,700 ————- Total . . . . . . . . . . . . . . . 1,115,200 =========

Manufactured Products. pounds sterling Sugar . . . . . . . . . . . . . . . 116,400 Cotton seed, meat and cakes . . . . 84,630 Palmetto hats . . . . . . . . . . . 63,120 Tobacco . . . . . . . . . . . . . . 50,000 Tanned hides, &c. . . . . . . . . . 3,500 ————- With other matters making a total of 377,000 =======

By the foregoing it is seen that the export of precious metal is equal approximately to half the total. Mexican silver coinage is exported largely to the Orient, and silver bullion to Europe; whilst among vegetable products the hemp exports take nearly half the total value. Mexico's principal market for most of her staple food and textile products is at home, so the export is small.

By far the greater part of Mexico's trade is done with her northern neighbour, the United States, and the following table shows how the various countries of the world rank in their commerce with the Republic, according to the figures for the year 1906-1907, in pounds sterling, with fractions omitted.[41]

Country. Exports. Imports. pounds sterling pounds sterling Great Britain . . . . . . . . . . . 3,187,000 2,360,000 Germany . . . . . . . . . . . . . . 2,011,000 2,450,000 France . . . . . . . . . . . . . . . 805,500 1,760,000 Belgium . . . . . . . . . . . . . . 538,000 300,000 Spain . . . . . . . . . . . . . . . 300,000 800,000 ————- ————- With other countries, European total 6,850,000 8,330,000 United States . . . . . . . . . . . 17,581,000 14,638,000 Canada . . . . . . . . . . . . . . . 45,700 45,000 Central America . . . . . . . . . . 79,000 7,000 South America . . . . . . . . . . . 10,000 39,000 West Indies . . . . . . . . . . . . 237,000 19,000 ————— ————— Sum Total . . . . . . . . . . . . . 24,800,000 23,336,000 ========== ==========

[Footnote 41: Adduced from the "Mexican Year Book, 1908."]

Thus the commerce of Mexico is seen to be in a satisfactory and growing condition, and it may be expected to develop steadily, as the large unworked areas of minerals and agricultural land become opened up by both native and foreign capital, towards which there is an increasing tendency to investment.

Banks and Currency.—The chartered banks of Mexico are considered to be solid institutions, and their past history has been a creditable one. The leading banks are: the National Bank of Mexico, with a capital of 3,200,000 pounds sterling, and reserves of 2,675,000 pounds sterling; the Bank of London and Mexico, capital 2,150,000 pounds sterling, reserve fund, 1,500,000 pounds sterling; the Mexican Central Bank, capital 3,000,000 pounds sterling; and various other mortgage and commerce banks, clearing house, &c.; whilst throughout the state capitals are the respective chartered banks of such states, as the banks of Chihuahua, Yucatan, Durango, Zacatecas, &c., &c. The total capital of all Mexican banks is given as nearly 20,250,000 pounds sterling. The currency of Mexico is now established on the gold basis. Previous to the year 1905 a bimetallic system had always prevailed in Mexico, a gold and silver currency; and as Mexico was one of the largest producers of silver in the world she had naturally encouraged the use of the white metal, whose coinage at the mint was free; whilst the demand in the Orient for Mexican dollars was a stimulant to the production of these. The fall in the price of silver was, to a certain extent, beneficial rather than inimical to Mexican industry, as it had the effect of stimulating home manufacture in a country whose raw material and labour was paid for in silver. This would have been permanently beneficial had the value remained constant, but the continual fluctuation in the price had an unfavourable effect on commerce, and a monetary commission decided that the gold basis should be adopted, and this became law accordingly; the Mexican peso or dollar being of a value of half an American dollar, or equal to approximately 2s. of British currency.

Principal Industries.—These have already been spoken of in the chapters dealing with mining and agriculture. There are throughout the country more than 150 metallurgical establishments, native and foreign, which treat the mineral ores from the mines, either by amalgamation, lixiviation, or smelting. The principal smelting works are those of the American Smelting and Refining Company, of New York, with a copper smelter at Aguascalientes of 2,000 tons daily capacity, and others at Monterrey, Chihuahua, and Durango, well-equipped modern establishments; the Compania Metalurgica Mexicana, also of New York, with a large plant at San Luis Potosi, and other enterprises in various parts of the country engaged in the production of gold and silver bullion, copper matte, lead, zinc, &c. A good deal of ore is still exported, nevertheless, in a crude state, amounting in 1907 to a value of 1,700,000 pounds sterling. The Mexican Chamber of Mines, founded in 1906, is a useful institution in connection with the mining industry.



The cheap labour and abundant raw material are conducive to Mexico's development in manufacturing; and a further element is that of the abundant waterpower which exists in certain sections of the country. Several important hydraulic and hydro-electric generating stations exist, among them being the Santa Gertrude's Jute Mills of Orizaba, developing some 5,000 horse power, operated by British capital; the Vera Cruz Light, Power and Traction Company, Ltd., also British; the Atoyac Irrigation Company, native capital; the Anglo-Mexican Electric Company of Puebla; the Puebla Tramway, Light and Power Company, a Canadian enterprise of great extent and promise; the Mexican Light and Power Company, also Canadian, which absorbed several existing native and foreign enterprises. Connected with some of these important and generally prosperous hydro-electric installations the name of a well-known British firm[42] figures prominently; the builders of the great valley drainage work and the re-constructors of the Tehuantepec Railway and harbour works, and the Vera Cruz harbour works, and other matters of magnitude. So if, as has been stated elsewhere, British trade in Mexico is declining, it is at least satisfactory to show that British capital and enterprise has established and profited by some of the greatest engineering and public works Mexico has ever possessed; which will always remain as monuments to British thoroughness. Other hydro-electric stations are those of Guadalajara, at the famous falls of Juanacatlan, operated by native capital; the Guanajuato Light and Power Company, an American concern, with a transmission line 100 miles long.