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 instru