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Today, after two decades of revolution, the figure has shrunk.
When one enters a hardware store it is highly probable that it is owned by a German; a grocery store by a Spaniard. The overwhelming bulk of the output of the mines, the oil wells, the factories, the power companies, is controlled by foreign capital. Railroads are heavily mortgaged to American and English bondholders. The plain conclusion is that industrialization in Mexico--such as it is--has been taken over by aliens, and is not an affair of native Mexicans. Since the Revolution, however, these alien hands have not had matters altogether their own way; their sometime carefree methods of exploitation have been seriously hindered by new property conceptions, by labour codes, agrarian laws.
In 1873, Mexico was so emphatically an independent economic area that its total foreign trade reached the ridiculous figure of only $25,000,000. Diaz attempted to clamp the nation into the world economic system by raising the total to $250,000,000 in 1910. Today it has advanced further, to $487,000,000 in 1929--$192,000,000 of imports, $295,000,000 of exports. Some fifty-one per cent of the total is with the United States. Imports run heavily to manufactured goods-machines, automobiles, iron and steel, cotton cloth, chemicals; exports run heavily to raw products-silver, lead, zinc, petroleum, coffee, raw cotton, henequen. Only a tiny fraction of goods manufactured in Mexico finds an export market, mostly with other Latin American countries.
We must indeed modify the conception of Mexico as a horn of plenty, brimming with material wealth. As far as evidence is available, it is a country relatively poor in soil; inadequately irrigated; declining in oil production; rich in minerals-for the moment the least profitable variety of minerals; with but the merest beginnings of
the paraphernalia of industrialism-an equipment if you please inferior to that of the state of Texas. That there is room for expansion in the latter item goes without saying, but it will have to progress in the face of bitter transportation difficulties, a lethal climate in certain areas, a government policy which has executed a right about face from the come-hither attitude of Porfirio Diaz. Personally I am enchanted with the prospect. It is obvious that the rhythm of Tepoztlan is in no immediate danger, and that the basic pattern may be modified only slowly if at all. The enforced delay, furthermore, should give Mexicans opportunity to contemplate the cavortings of the machine in the nations of the Westparticularly during periods of business depression-and should steel them to admit it only on compulsion of more civilized behaviour.
Meanwhile handicraft economics supplies virtually all fundamental needs of the population, as we have seen in detail. Mass production obviously cannot compete in charm, and probably not in quality, with most Mexican handicrafts. I am convinced, in the teeth of all the doctors of economics, that it cannot always compete in price. Here is a village potter, making let us say five hundred articles a year. What are his costs? Try and find them. His clay and colours came out of the nearby soil, his wheel is beyond the laws of depreciation. He has no interest or insurance, and normally no taxes. He cultivates a milpa for his living, and makes pots for fun in his spare time, thus dispensing with the charge for direct labour. To make matters worse, his expenses of distribution are so involved with the spirit of the fiesta-he goes to market for the amusement he finds there-that they collapse to a practical zero. In short, the fellow has no costs at all; the cash he receives for his pots is so much velvet. (In regional exchange we should in justice allow a small expense account.) He sells a fine bowl for two cents, a great five-foot jar for a dollar, a lovely yellow water bottle for thirty cents. Try to beat that, Mr. Ford! He has no rent, no bookkeeping, no advertising, no spirited salesmanship. The only cost is his own time, and that he gives willingly, often lovingly. Much the same holds true for basketry, sarapes, woodworking, simple ironwork, leather-working, toys, sandals, sombreros, simple furniture, varying with the price of the raw material. The Indian system, for many products, in respect to both quality and cost, has mass production completely whipped.
Mrs. Ralph Borsodi, at Suffern, New York, produces floor wax in her own kitchen, made to Bureau of Standards formula, for $1.50 a gallon. An inferior product, purchased at the store, made with all the alleged economies of quantity production, costs her at least $3.50. She can show you jellies, preserves, canned goods, home produced at a fraction of the going market price, and far superior in quality. Her cost-accounting system, furthermore, would be approved by any certified public accountant who knew his business. Some day the practical men of the machine age will have to face the implications of Mrs. Borsodi's kitchen, and the potteries and looms of Mexico. Mass production has its place, but not necessarily sprawled over the whole bed.
ASSORTED STATISTICS in round numbers
| Year
| | 1930 | Total population | 16,404,000
| | 1930 | Population of Mexico City (Federal District) | 1,218,000
| | 1930 | Area of Mexico-acres | 490,000,000
| | | square miles | 767,000
| | 1929 | Total exports | $296000,000
| | 1929 | Exports to United States | $118,000,000
| | 1929 | Total imports | $192,000,000
| | 1929 | Imports from United States | $134,000,000
| | 1929 | Government receipts including | $161,000,000
| | 1929 | import duties | $42,000,000
| | 1929 | public services | $30,000,000
| | 1929 | tax on industry | $23,000,000
| | 1929 | Government disbursements including | $138,000,000
| | 1929 | war | $45,000,000
| | 1929 | public works | $17,000,000
| | 1929 | education | $ 14,000,000
| | 1927 | Railroad mileage | 14,000
| | 1929 | Tons of freight carried | 10,000,000
| | 1929 | Passengers carried | 16,000,000
| | 1930 | Federal surfaced highways--miles | 850
| | 193o | Budget for federal highways | $ 7,000,000
| | 1930 | Motor vehicles in Mexico | 75,000
| | 1929 | Gasoline consumption, gallons | 68,000,000
| | 1926 | Telegraph lines, miles | 84,000
| | 1928 | Paid telegrams sent | 3,700,000
| | 1928 | Free telegrams sent (official, etc.) | 1,300,000
| | 1930 | Number of telephones | 60,000
| | 1929 | Post office pieces handled, domestic | 130,000,000
| | 1929 | " " " " foreign | 62,000,000
| | 1929 | Insurance in force (mostly fire) | $684,000,000
| | 1928 | Corn production, metric tons | 2,079,000
| | 1928 | Wheat " " " | 324,000
| | 1928 | Bean production, metric tons | 195,000
| | 1930 | Sugar " " " | 198,000
| | 1928 | Henequen " " " | 133,000
| | 1926 | Number of cattle | 5,600,000
| | 1929 | Silver production, kilograms | 3,381,000
| | 1929 | Gold " " | 19,000
| | 1929 | Lead " " | 248,700,000
| | 1929 | Copper " " | 86,500,000
| | 1929 | Zinc " " | 174,050,000
| | 1929 | Mercury " " | 82,000
| | 1929 | Oil " barrels | 45,000,000
| | 1926 | Electric horsepower capacity | 464,000
| | 193o | Estimated foreign capital | $1,500,000,000
| | 1930 | " U. S. capital including bonds | $1000,000,000
| | 1928 | Number of schools | 17,923
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