No. 203.
Mr. S. T. Trowbridge to Mr. William Hunter.
Sir: Your circular from the Department of State, bearing date August 19, 1870, came to hand by the last steamer. In reply to the order to communicate facts and make suggestions touching the improvement of relations between the United States and Spanish American countries, I have the honor to report as follows:
It should be stated, probably, as a prefatory remark, that the amount of produce which this country furnishes, in either raw or manufactured articles, to be shipped from this particular department of said Spanish American dominion, is, in comparison to any portion of the United States reclaimed from territorial primitiveness, but a meager part. And the main portion of the commodities shipped from this port is gathered from the forests, from animals, and through other sources in which the want of commendable enterprise and industry are sadly, though palpably, plain to be seen. The political economist and historian will, in the [Page 275] domestic troubles of Mexico, readily recognize the cause of all this. Yet there are other causes, patent to the recognition of commercial observers, which tend largely to subtract from the United States the carrying trade and add it to other nations. One of the articles most extensively exported from this coast is the mahogany and other fine-grained woods used in the manufacture of furniture. Although they are in demand in the United States, with fair and acceptable prices advertised, yet the realizing price the shipper obtains is but a part of his honest expectations; for on landing his cargo in the United States ports he is subjected to two and very different measurements, on one of which he pays freight and the forest laborers who furnish the wood, and the other measurement is that by which his commodity is sold, whereby, in one instance furnished me, the discount in measurement amounted to forty per centum, on that for which the shipping party paid freight and original purchase; whereas in the European ports the custom of the purchaser is to pay for all the wood received, being governed by the same absolute measurement in purchasing as the customs and carriage departments do in establishing tariffs and freights. A knowledge of this unequal measurement being in the possession of shippers, gives the fine woods of the east of Mexico to Europe. Few articles other than this one instance, and probably none other in the short list of those exported from this country, are subject to the same objectional embarrassments as the fine woods. But even this is a great drawback to the interests of American shipping and manufacture; for there is a majority of the sailing vessels which come well ladened, but are compelled to return in ballast; and those which do not are principally European vessels bound for home ports and ladened with those fine woods, which, but for them and our American tradesmen’s refinement in financiering, would have been compelled to have gone too in ballast, or, at least, to have divided the shipments to our own country. The Mexican and Vera Cruz Railroad Company have contributed and will continue to contribute largely to the shipping interests of England to and from this country. Said railroad is owned by English capitalists, and English vessels bring Iron, ties, bridges, machinery, cars, &c., from England, and return with mahogany, making an active and lucrative business with Mexico, while our ships too often come with light freights and return in ballast. Yet American machinery is more popular here than English. As a proof of this, American cars and engines are more sought and prized by this same English railroad company than their own. Further, and with other classes of machinery, I had the great pleasure of visiting, in company with the Hon. Thomas H. Nelson, his most estimable and accomplished lady, and several citizens, the extensive cotton manufactories near Puebla, and it was observed by all the visitors, and the truth affirmed by the employés, that more work was accomplished, and equally well, by less hands and less propelling power, by the American machinery in use, than by the English. Both kinds were worked by adjoining interests, and the contrasts were very perceptible; while the English machinery is much more heavy and expensive, doubtless more durable, but once out of order requires transshipment to England to be repaired, which the American does not. This railroad company receives a subsidy of $800,000 per annum from the Mexican government, promptly paid, to assist in this laudable enterprise of developing their country. I learn this company extends, probably, no more than the amount of this subvention and the net earnings of those portions of the road now completed and in successful operation, in each year. It is twenty-five years since the road was commenced, and of the 300 miles of [Page 276] the road primarily to be constructed, 50 miles of the Vera Cruz and 120 of the Mexico end are completed. The intermediate distance of 130 miles is incomplete. Five miles have been completed in the past year of very unfavorable surface for railroad. I give these particulars because the remark has been made to me by officers now engaged in the construction of this road, that the company now owning it would dispose of it to an American company on advantageous terms. I am creditably informed that the finished portions are jointly clearing to the company over $700 per day, and have been doing so for the past year. This country holds no diplomatic intercourse or relations whatever with England, and hence the insecurity which the company feel surrounds them, induces them to dispose of what, under other and better circumstances, would be considered a capital investment. It is therefore presumed that an American company would be more profitable both to themselves and the Mexican nation than as the contract now stands. These facts advertised in the United States may induce capitalists to investigate and consult their own interests in this enterprise; and should the road be transferred to American capital, and some abuses of our mahogany merchants be corrected, doubtless the commercial and shipping interests, by said acts, will become much improved in the United States. There are other railroad enterprises in and through Mexico which should receive the commendatory indorsement at least of the American Government, and probably of American capital, pointing in the same direction and to the same end as that to which allusion has just been made.
No company or parties, however, would be wise in any investments of Mexican enterprise or speculations without thorough and competent legal investigations, as the under-current of financial deceptions in Mexico is so strong and popular that few foreigners managing the schemes of public improvements are sharp-sighted enough to steer clear of destructive breakers. I believe a war vessel stationed close upon our southwestern coast, with occasional cruisings to the Gulf ports of Mexico, would contribute to our commerce by diverting a very suspicious trade into legitimate channels, and into heavier-tonnaged vessels not now owned by the shipping interests of this country, and by those larger vessels landed in the chief ports of the United States. Whereas now, Zona Libra, or free-belt district of country, whose headquarters are at Matamoras, now receives large consignments of what I think is intended to be consumed in the United States markets, and should go to New Orleans. There was at one shipment from this port $20,637 37 worth of coffee, cocoa, and Campeachy thread sent to Matamoras, nearly five times as much as was shipped to any port from Vera Cruz, of which I am aware, at one time, for the past year. This shipment occurred August 20th last, on board the schooner Zona Libra, which was but a month before purchased from American owners, and then called Annawan. The invoice was 527 sacks coffee, 10 sacks cocoa, and 3 bales Campeachy thread. The shipment was made from this port by J. Galainena & Co., very respectable merchants of Vera Cruz, and consigned or sold in Matamoras. My office was simply to authenticate a signature, which I did without further inquiry. I do not know that illegitimate traffic was exercised by any parties interested in said cargo, nor can I fully aver that a war vessel would be able to correct the transactions, even though it were a certainty that smuggling did prevail, for that transaction referred to was one between two Mexican ports, over which a vessel of war belonging to the United States could exercise no legitimate control.
The shipping docket of this port presents one very serious obstacle [Page 277] to the encouragement of maritime intercourse with Mexico, and that is the number of sailing crafts which leave it in ballast. The enterprise of this country should, with its natural productiveness in a multiplied diversity of ways, furnish ample freight to all out-going vessels: whereas the true condition is the reverse. Here, too, we fail to have control, although American example is a precept much preached about in Mexico. I can see no promising prospect of things being much better, because the laws, admitting them to be good enough, (which I am loth to do,) are so often viciously and treacherously administered, that enterprise is thoroughly intimidated and stultified. The rapacity of revolutionists levying contributions and extortions upon crops, farms, trades, capital, and stocks, confiscates all ambition and honesty of purpose in the acquisition of anything which may be subjected to their mendacity. It has nearly completed an exodus of all the foreign element of Mexican society, who could, even by heavy losses, leave the country.
We have, however, four lines of steamships, which, by the aid they receive from either their own governments or the Mexican, are doing a better business, so far as creating trade is concerned, than the sailing vessels. They succeed in obtaining more or less freight each way. But these could not make whole their yearly losses, if left without subsidized assistance. The American line is patronized by a subvention from Mexico, and receives no assistance from the home government whatever. There is no doubt in my mind but that Mexico has practically tested her own interests in thus patronizing foreign-built steamers, inasmuch as she had comparatively none of her own upon which to bestow her munificence. The governments of England and France have manifested wisdom in the support they render their maritime powers. Their industrial pursuits and manufactories go hand in hand with their marine; one branch being protected by such partial legislation that it consumes another. Our country produces most of the raw material which feed our manufactories. Hence their independence of the shipping interests as importing agents of foreign produce for their support. Yet the productions of the tropics, if consumed or manufactured in the United States, must of course be transported thence in ships, and hence to reduce import duties on such as cannot be produced within the limits of our Government, and to encourage vessels in doubtful lines of traffic, will evidently draw to our shores much that now, under other flags and in other bottoms than those of our own nationality, go to other and more distant ports. If we draw the trade from them we will, sooner or later, draw their tradesmen, their capital, and flags back to ships never owned but by American capitalists, who but for a better profit sailed under foreign colors. The family partiality should never be so exercised as to drive any of its well-meaning or even erring members from home.
I hold that our Government should show its liberality largely to those branches of enterprises which redound so benignantly to its aggrandizement and prosperity; and thereby believe that the national obligations will the more easily and rapidly be met. Our high protection has already built up colossal capitals of wealth and influence. Some large fortunes, in the estimation of poor laborers who work them, are realized in even a single day by some of our highly protected and highly patronized manufacturing establishments. I am glad to see their success, as it is glory to American genius; but I do not like to see it at the expense of our crippled and enfeebled commerce, now dwindling into an almost fatal marasmus, and which has paid and is paying, both directly and more largely indirectly, so large a proportion of our national indebtedness. Then why not return the compliment? [Page 278] If commerce contribute so bountifully to the delinquent wants of the Government, why should our noble and just Government be so tardy and coy in response recompense? Doubtless, if Congress will seek the profundity of this casket for a solution of the hidden mystery, touching the source and fountain of commercial success in the United States, it will be found. But evidently these crude views from Vera Cruz is but “carrying very inferior coals to Newcastle,” where larger and liner ones are mined. It is said, however, in adage, that we should go from home to learn domestic secrets. Hence, perchance, I hear that the lobby for high protection in Washington during the last revision of the tariff was of prodigious proportions, a fact (if it is one) within itself sufficient to have made the bill too low rather than too high by all just and considerate legislators. The histories of lobbies are immensely uniform in their expressions; that a weak and languishing cause cannot afford a heavy and expensive lobby. Also, that a just and palpable series of facts intrusted to the integrity of what should be the best men in the nation require no lobby. And further, if a lobby advocate a just cause it is because a neglect has been perpetrated and popular feelings fear a further continuance.
These problems, justly solved, will do more for the acquisition of Spanish-American commerce than all else of which I can comprehend.
Feeling that you want but an index, as it were, of facts as they impress me in this port, I submit them with renewed assurances of my most faithful consideration and esteem.