Racial Elements.-Sixty-one percent of the Mexican population is estimated to be of mixed race (predominatly Spanish and Indian), 29 percent pure Indian, and 10 percent white. Distribution of foreigners in Mexico by nationalities in 1900 and 1936 is shown in table 3.

Table 3.-Foreigners in Mexico, by Nationalities, 1900 and 1936

Since the expropriation of the petroleum companies in March 1938, it is believed that the number of foreigners, particularly of Americans and British, has declined.

A total of 274,666 foreigners arrived in Mexico to take up permanent residence during the years from 1922 to 1938. Annual totals declined from a high of 43,959 in 1925 to 709 in 1938. Much of the decline in immigration in recent years is believed ascribable to increasingly stringent entry requirements. Occupational Grouping.—Approximately 77 percent of Mexico's employed population, other than those engaged in domestic service, derive their income from agriculture, livestock, and other rural industries. The 1930 census shows a total of about 4,210,800 engaged in occupations other than industrial. The 1935 industrial census gives 294,020 as the number employed in the industries included. A summary of these totals, provided in table 4, gives an approximate distribution of the employed population, by occupations.

1 Figures for all groups down to that indicated as "Industries" are from the Census of 1930; figures for the industrial group are from the Industrial Census of 1935.

Figures covering the mining and petroleum industries are restricted to enterprises having an investment of more than 10,000 pesos.

PURCHASING POWER

Purchasing power of the preponderant portion of the Mexican people is low. Consistent effort during recent years has been expended by the Mexican Government to improve the social and economic condition of the masses through a policy favoring labor and through the agrarian program under which large landholdings have been divided among agricultural labor groups. There are three social classes-the well-to-do; the growing middle class; the agricultural and labor class.

Sale of imported and luxury goods, such as automobiles, highquality radios, electric refrigerators and stoves, and wearing apparel, is largely confined to the well-to-do, who represent not more than 10 percent of the population.

Consumers in the middle class depend largely on domestic sources for supplies, although there is a limited demand from this group for lower priced imported goods, including radios, stoves, and wearing apparel.

Table 5.-Average Daily Wages of Skilled and Unskilled Workers 1 in Mexico 1

1 Data from Mexican Department of Labor covering period January-June 1937. 2 Average United States currency value of the Mexican peso of $0.225741 for first 7 months of 1939 is based on daily quotations of noon buying rates for cable transfers in New York City from statistics of the Federal Reserve Board. (For June 1939 the average was $0.1975 and for July was $0.171327.)

Demand for foreign goods generally has been restricted by low purchasing power of the peso in terms of foreign currency since the expropriation of the oil companies in March 1938-a condition which has tended to stimulate substitute purchases of available domestic goods. It is estimated that radios average one set to 78 inhabitants, and motor vehicles one to 190 inhabitants.

Purchases by the farming or laboring class, which includes the great bulk of the population, are confined largely to prime

necessities. These workers receive very small cash incomes and, therefore, buy inferior quality foodstuffs, manta (white sheeting), and cheap shoes (mainly sandals, or huaraches). Their living quarters are often crowded huts of one or two rooms.

Wages. Statistics of average wages for representative classes of skilled and unskilled labor for the period January to June 1938 have been compiled by the Department of Labor of the Mexican Government. These wages and the average wages paid in the Federal District in certain white-collar occupations are shown in tables 5 and 6.

Table 6.-Average Monthly Wages of White-Collar Workers in 1 the Federal District, Mexico 1

1 Data from Mexican Department of Labor covering period January-June 1937. 2 Average United States currency value of the Mexican peso of $0.225741 for first 7 months of 1939 is based on daily quotations of noon buying rates for cable transfer in New York City from statistics of the Federal Reserve Board. (For June 1939 the average was $0.1975 and for July was $0.171327.)

CHIEF ECONOMIC ACTIVITIES

Agriculture. As Mexican economy is preponderantly agricultural, that industry forms the basis of national Government policy, particularly as expressed in the "Six Year Plan" adopted by the Revolutionary Party on December 3, 1933. Under that plan, distribution of expropriated land among rural families has been speeded by means of the agrarian code made effective April 9, 1934, and by a special banking system set up to extend financial aid to farm cooperatives. Distribution of expropriated farm lands from 1910 to 1934 is estimated at 35,000,000 acres. Since 1934 to September 1, 1938, such distribution has totaled about 20,000,000 acres. More land has been parceled out under this plan since 1934 than in the preceding 18 years. Recipients of parceled lands total more than 50 percent of the agricultural population. Land in 1930 was designated as follows: Cultivated, 28,400,000 acres; pasture, 164,000,000 acres; forests, 63,970,000

acres.

The main agricultural products are corn, beans, wheat, barley, rice, bananas and other fruits, tobacco, chickpeas, sugar, fresh vegetables, alfalfa, henequen and other fibers. The total value of agricultural production in 1935 was 305,627,720 pesos ($84,903,381), of which fruit accounted for 56,449,838 pesos ($15,681,765).

Table 7.-Production (Compared With 1931-35 Average) and Exportation of Mexican Agricultural Crops, 1937 and 1938

1 Converted from average United States currency value of the Mexican peso of $0.2775 for 1937 and of $0.2212 for 1938, both based on daily quotations of noon buying rates for cable transfers in New York City from statistics of the Federal Reserve Board. 2 Unit, metric ton.

3 Unit, pound.

The

Stock Raising.-Stock raising, traditionally outstanding in Mexico's economy, is favored by extensive grazing areas. 1930 census shows the following livestock distribution: Cattle, 10,083,000; sheep, 3,674,000; goats, 6,544,000; horses, mules, and asses, 4,799,000.

Mining.-Mining is Mexico's oldest and most important industry. Mineral exports (including crude petroleum, but excluding refined petroleum products and byproducts) were 72.47

1 Conversion based on average value of the Mexican peso in U. S. currency for 1935, based on daily quotations of noon buying rates for cable transfers in New York City, from statistics of the Federal Reserve Board.