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512 enterprises remain about in statu quo. There are now towards four thousand miles of railway in the Republic.

It has to be confessed that the American railways in Mexico have not yet proved so profitable an investment as was expected; indeed, for many they must have been very unfortunate. The government, owing to its financial straits, suspended the subsidies to them in 1884, and funded the amounts then due in a long term bond, as a part of the floating national debt. However, the securities have of late appreciated in value, the subsidies have been resumed, and matters are looking much better. The Central bore up against its reverses, but the National succumbed and became bankrupt. It has lately been reorganized in the usual way, and upon this hard-pan basis its prospects should be far more favorable. The earning capacity of all the roads is held in abeyance, as yet, by ruinous local conditions, which tend to throttle commerce and trade generally. The effect of the railways on the country itself has been chiefly in the way of adding stability to the government. As a pacifying influence they have justified all that was claimed for them. Had they no other result than this, Mexico must esteem them worth far more than they have cost. A feverish appearance of prosperity was created at the time of the completion of the principal line by a large temporary increase of trade with our own country. The total value of our exports to Mexico grew from about $11,000,000 in '81 to more than $16,500,000 in '83. It fell off again, however, in '84 to less than $13,000,000. The difference was largely due to the importation of rail- way and other materials for the works of improvement themselves. Moreover, the increase at the railway points on the frontier was accompanied by a corresponding falling off at Vera Cruz. This port, under the new competi-