Wednesday, February 19, 2014

The Dawn of Industrialization

As we talked about in class Mexico was now independent, but what how good is independence if Mexico has to rely on other countries to invest in its industries? Mexico looked like a chance for European countries to make significant profits if they invested in it. Mexico was independent, but many factors created a state that couldn’t be totally self-sufficient.


There was much optimism that Mexico could become a self-efficient nation. Under Spain’s rule Mexico had been fueling the Spanish and Bourbon Empires. Mexico had an abundance of silver mines that were its main source of income. During the war of independence most of these mines were destroyed. The ones that weren’t destroyed, like La Valenciana mine, employment dropped from 3,000 to 1,000. For the mines to become functional and profitable again they would be restored. Mexico did not have the capital to restore the mines so they opened them up to foreign investors. To help the mining industry a new law permitted tax free importation of mercury to refine silver, along with a low production tax of silver at 3 percent (pg. 172, Russell).

Britain would become the major investor in Mexico’s silver mines. By 1827, the British had begun operations in Mexico and totaled 3 million euros invested. The British brought more than just money to the table they brought mine experts, skilled mine workers, and all their mining technology. They hoped this would secure a win, because Mexico was looked upon as a “mother lode of silver” (pg. 172, Russell).  The optimism was so high at this point when the The Real del Monte Company, based in London, purchased Mexican Silver mines from Pedro Romero de Terreros. Mineshares were worth ten times more by the end of the day. The enthusiasm would soon go away when investors found out the means of transporting their equipment to the mines would be difficult. In one case 1,500 tons of supplies were sent to Veracruz and 150 wagons and 760 sets of mule harnesses  had  be used to transport it to the mine. They also had to hire men to improve the roads to the mine that was 50 miles away. The total process took eleven months to complete (pg. 173).  They would also have to build haciendas to supply food for their workers. The Real del Monte investors and shareholders would lose millions because mines flooded and workers wanted more pay. “By 1849, the company had produced $11 million worth of silver at the cost of $16 million” (pg. 174, Russell). This would not be the only company to fail in the mining industry in Mexico; all but one company in Mexico failed.

Manufacturing also suffered from some of the same problems as the mining industry. Queretaro once was a major textile producer had fallen into ruin. Entrepreneurs wanted to expand stumbled upon problems such as capital shortages, political instability, and poor transportation. Compounding those problems competition from imports also caused a decline in the Mexican textile production (pg. 175, Russell). Artisans would now become 28% of the cities workforce. They mostly worked in shops owned by others because they lacked the capability to open their own shops. These artisan shops also never became manufacturing factories because of lack of capital. Artisan shops were also hurt by not being able to obtain favorable tariffs policies. Mexico was just lacking everything essential to create successful manufacturing factories. They were falling behind and Mexico would suffer tremendously because of it.

Mexican agriculture also suffered because of “extensive damage to dams, wells, and aqueducts that provided water for Mexico’s 1,729,000 irrigated acres” (pg. 177, Russell). Haciendas owners also suffered from loses because of the decreasing number of miners and city dwellers. Even though some were failing many generals and politicians would invest their money in haciendas. According to Ponciano Arriaga, rich landowners in Mexico resembled the feudal lords of the Middle Ages. They imposed their own taxes, laws, and punishments in exchange for security in an insecure rural environment. These haciendas were very self-sufficient, as artisans produced saddlery, furniture, titles, and pottery (pg. 175, Russell).


Mexico had investors in the industries that Mexico could potentially flourish in. Even with the investors they struggled to have successful industries. The main factors that keep coming up are the means of transportation and political instability. Mexico was still transporting things by wagons and mules. While trying to build railroads Mexico was only able to build 15 miles of railroad. If Mexico was to flourish it had to put more emphasis on Railroads and stabilizing its government. 

4 comments:

  1. Your post really highlights the key points that we discussed this week. Specifically with answering the 'now what?' question that Dr. Gannon refers to. After having such a great achievement the people of Mexico suddenly were thrown with so much responsibility that failure practically came upon them before they even were given the slightest chance to succeed. It is not to say that Mexico couldn't have ever overcome these obstacles, but it was burdened down by so much and it was a new nation, still trying to determine how it was even going to function. I think one of Mexico's biggest obstacles was the fact that it had to still depend on European countries, as you mentioned. It made Mexico more dependent than independent. But unfortunately, as you explained, even when Mexico had some good qualities, the country was not prepared to keep those good things in operation or deal with problems when they arose. Ultimately, Mexico was just too overwhelmed, when it was too weak to handle its major problems.

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  2. I also think your post does a wonderful job of highlighting what we focused on last week. It also shows how much of a mess Mexico had made for itself. It seems through our readings and videos there is always one issue after another that Mexico causes then has to deal with themselves. To me it seems as though Mexico is always trying to fix whatever is broken but one, there are SO MANY things that are broken and second no two groups could agree on what the solution and best way was to fix the problem. Even in hindsight I can't sit here and pin point what would need to be fixed first to get the ball rolling. Maybe a stable, honest, selfless leader but as we can see from our readings there weren't many men like that who had the proper bloodlines to rule. Karmen, I also like how you said failure was almost thrust upon them, they were not left with a country that had the ability to fend and provide for itself.

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  3. A country becoming independent is a lot like an adult going out into the world for the first time. They have to figure out how to run their lives and how to finance their choices. Mexico definitely had its own problems when it came to this kind of thing. Their inability to keep one person in power for a significant period of time had to be detrimental to their efforts. With new people coming into office every year or two, there really was no way to establish solid programs and policies that would allow Mexico to flourish. And even if there had been enough time for these presidents to be successful in the positions they were in, there’s nothing to say that the policies and plans they would implement would be productive.
    You also touch on the lack of uniformity in the Mexican population, especially in the haciendas that imposed their own type of government within themselves. This seems to also have contributed to the problems Mexico faced. Without a solid backing from the people they were governing, solid implementation of plans and policies had to be difficult. Besides that, there was the ever present threat of revolt and staged coups that would overthrow or undermine the president’s power.
    I think one of Mexico’s biggest issues was the fact that they never seemed to be able to get their feet under themselves. Things would just start to look good and then there would be a war or a revolt or a coup that would send everything crashing back down.

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  4. You did a great job focusing on the problems Mexico had with its advancement towards industrialization. Mexico was in shambles when it achieved its independence resulting in its lack of resources to export. It’s tough to imagine gaining your independence than having to rely on different countries from the same continent of your former conquerors. I’m sure all these companies looking to invest in Mexico were looking to take advantage of this land, However I believe it was necessary to depend on other countries to help Mexico move forward with their industrialization. Unfortunately as you pointed out the lack of capital put a damper on the growth of Mexico, therefore the government would remain weak. I also want to point out the environmental problem that went hand in hand with the development of Mexico. In 1948, the Real del Monte Mine used three steam engines that burned 2,600 350-pound loads of wood a month. (Russell 183) Along with the environmental concerns of this fact, it also points out the absence of other types of fuels. Another issue that was a large concern was that of smuggling. Mexico has 10,000 miles of coastline which meant that it was nearly impossible to prevent goods from entering the country illegally. I agree that the railroad was an important need for the Mexican industrialization and economy to grow. There were just too many problems to overcome before Mexico was able to achieve the success of growth.

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