percent of the total value of Mexico's exports in 1938. Silver accounted for 20.1 percent of total exports in that year; gold, 18.2 percent; and lead, 13.0 percent.

Table 8.-Production (Compared With 1931-35 Average) and Dollar Value of Leading Mexican Minerals (Except Coal and Petroleum) for 1938

1 Average 1938 value of Mexican peso in United States currency, $0.2212. 2 Metallic content of ore extracted.

Coal mining has been active in the State of Coahuila, and deposits are found in five basins which center about Sabinas, 76 miles southwest of Piedras Negras (opposite Eagle Pass, Tex.). In general, all fields are along the National Railways of Mexico between Piedras Negras and Saltillo. Production is sold to the National Railways and to Mexican smelters. The Sabinas coal is highly bituminous, yielding 60 to 70 percent carbon and producing a high grade of coke well adapted to smelting. Byproducts from Rosita coke ovens include naphthalene, motor benzene, coal-tar oil, creosote, and sulphate of ammonia. Much of these byproducts is exported. Annual coal production for the 5-year period 1931-35 averaged 753,000 metric tons. Total 1938 production was 893,000 metric tons.

Petroleum production and potential production fields extend along the northeastern border and south along the Gulf of Mexico. Much of the production centers around Tampico. The export value of petroleum and its derivatives was 167,343,371 pesos ($46,437,785) in 1937, or 19 percent of the total value of all exports of 892,388,563 pesos ($247,637,826), in comparison with

79,758,580 pesos ($17,642,598), or 10 percent of the total for all exports of 838,127,957 pesos ($185,393,904) in 1938.

Production of light and heavy crude petroleum and of petroleum products in 1937 and 1938 is shown in table 9.

Table 9.-Petroleum Production of Mexico, 1937 and 1938

Since the expropriation of the oil companies in March 1938, large quantities of petroleum have been taken by Germany in barter for heavy machinery, hospital and office equipment, and other articles.

Forest Products.-Forests and woodlands occupy 20 percent of the total land area of Mexico. About 13 percent of the forest area is exploited. Land barren of forests totals about 409,266 square miles and occupies the greater part of the plateau region. Tropical forests are extensive in the southeast, except Yucatan, skirting both coasts south of Sonora and Tamaulipas. Cupuliferae, especially oak, extend along the inland border of tropical forests, but continue farther north. Coniferous forests, largely pine, extend roughly along the borders of the high plateau region. The 1930 census gives value of all forest products as 21,000,000 pesos, with percentage production apportioned as follows: Sawn lumber, 41; wood, 25; cross ties, 16; charcoal, 11; miscellaneous, 7. Total values of lumber exported in 1937 and 1938 were 2,597,894 pesos ($720,916) and 2,576,669 pesos ($569,959), respectively. Imports (largely for construction) for the same years, in the same order, were valued at 2,432,073 pesos ($674,900) and 996,407 pesos ($220,405).

Manufacturing.-Industrial plants listed in the census of 1930 numbered 48,540, represented a total capital investment of 1,004,644,745 pesos, and provided employment for 249,120 workers. Manufacturing has been greatly stimulated in years of comparative internal peace since 1921 by a high protective-tariff policy, inflow of foreign capital, and by the cultivation of a nationalistic spirit. The demand for merchandise of quality and price in keeping with the generally low purchasing power is to a large extent met by national industry.

Illustrative of the decreasing dependence of Mexico upon outside sources for manufactured products in a number of cate

gories is the expansion of various important industries. Domestic production virtually supplies the demands of the market for shoes, but the chemical industry is largely one of converting foreign and local raw materials to finished products. Three important American automobile entities operate assembly plants in Mexico, thus escaping the high duties on finished motor vehicles. Two large American tire companies manufacture their product locally, and an important American electrical-equipment manufacturing organization has established a factory for the production of electric light bulbs. Among other industries which have shown marked progress, tending proportionally to reduce imports, are medium-grade clothing, glassware, leather, paper and paper products, and textiles. Outstanding progress has been made in the manufacture of cigarettes and cigars, soap (which virtually supplies local demand), beer, and rubber, which has greatly limited imports of these products. Production of iron and steel products has expanded in late years in proportion to increased railroad and building construction. The considerable expansion in tourist trade has increased the Mexican handicraft output, especially of serapes, silver articles, pottery, glassware, drawnwork, and novelties.

Noteworthy gains made by a number of industries are illustrated by statistical data shown in table 10.

Table 10.-Production Values in Mexican Industries,
1936 and 1937
[In pesos]

1 Of this total, cigarettes (894,275,000 packs) made up 50,843,000 pesos.

298,893 liters (74,063 bottled, 24,830 in barrels).

37,506,000 pairs.

4 Includes 206,000 pneumatic tires at 13,887,000 pesos.

5 344,693 metric tons.

15, 700, 000 1 52, 052, 000 2 43, 612, 000 37,504, 000 37, 371, 000 33, 930,000 322, 636,000 18, 034, 000 + 18, 768, 000 $8, 605, 000 7,063, 000

NOTE.-Average value of Mexican peso in United States currency was $0.2775 in

1936 and 1937.

Table 11.-Mexican Production and Importation of Electrical Energy, 1937 and 1938

Mexico City, the center of the country's financial and political life, is also the hub of its transportation system. The capital city is of considerable industrial importance and is the main distribution center for the national market. The head offices in Mexico of many American companies, as well as of railroads, mining companies, the petroleum industry, and banks, are located there.

From the United States, the Mexican capital may be reached by automobile highway, by rail, by air line, or by a combination of ocean with air, or rail, or highway transportation.

HIGHWAYS.-The great Pan American Highway is open for motor transportation from Laredo, Tex., to Mexico City, a distance of 764 miles, via Mexico's industrial "Pittsburgh," the city of Monterrey, where are located important steel, glass, leather, timber, and brewing industries. This highway traverses sections producing sugarcane, grains, oranges, lemons, and minerals.

Pan American Highway Junction Points.-At Monterrey, a paved highway branches west to the important commercial and industrial city of Torreon, about 220 miles distant in the State of Coahuila, passing by way of Saltillo, a mining and farming center and the capital of Coahuila. At El Limon, 13 miles north of Ciudad de Mante (Villa Juarez), a gravel-surface road connects with Tampico, a petroleum center on the Gulf of Mexico, 111 miles distant (El Limon is 403 miles from Laredo and 370 miles from Mexico City). A dirt road, traversable in dry weather, extends from Pujal, on the Pan American Highway (69 miles south of El Limon, 485 miles from the border, and 290 miles north of Mexico City) for 85 miles to Tampico via Villa Guerrero. At Antiguo Morelos, 26 miles south of El Limon, a gravel-surface highway extends west a distance of 150 miles to San Luis Potosi, an important mining and industrial center.

Other Highway Routes.-From the Gulf coast, in addition to the Tampico routes to the Pan American Highway as described above, the traveler may reach Mexico City by the highway from Veracruz via Jalapa and Puebla, a distance of 286 miles, over an improved road (largely gravel surface) from Veracruz to San Hipolito, a distance of 178 miles, and thence over a paved highway via Puebla to Mexico City.

From the Pacific coast port of Acapulco one may proceed by motor vehicle over a modern highway, via Iguala and Cuernavaca, to Mexico City, a distance of 281 miles, the highest point being 9,866 feet at La Cima, 27 miles from Mexico City. The highway is petrolized from Iguala to Mexico City, a distance of 122 miles. From Acapulco to Iguala, 161 miles, the surface is gravel.

From Mexico City, Guadalajara (422 miles distant) is reached by an improved highway, paved for 40 miles to Toluca, thence gravel via Morelia to Guadalajara.

TRAVEL NOTES ON VARIOUS HIGHWAYS

The following itineraries cover the more important highways, and include the larger towns and cities.

Laredo-Mexico City.-Distance, 764 miles. Customs, immigration, and sanitary authorities' inspection after crossing the International Bridge from Laredo, Tex., into the town of Nuevo Laredo. Advisable to stop first night in Monterrey, 146 miles south of the border; the second night at Ciudad Mante (Villa Juarez), 262 miles south of Monterrey, or at Valles or El Banito, 321 and 328 miles, respectively, south of Monterrey. The rest of the journey is one day's unhurried drive into Mexico City. Ten miles south of Nuevo Laredo there is customs inspection of papers and baggage seals. At Mamulique pass, 105 miles from the border, there is another Federal inspection. Among the towns passed en route are the following: Monterrey.-146 miles from the border; 132,577 population; important industrial center; hotel accommodations and meals. Linares.-228 miles from the border; meals at hotels. Ciudad Victoria.-324 miles; automobile court, garage, and repairs; fishing and hunting. Valles.— 467 miles; advisable to fill gasoline tank at this point. El Banito. Sulphur baths; small hotel. Tamazunchale.-539 miles; a short stop should be made at the foot of the abrupt slope of the high plateau before starting the climb, which is best made between 10 a. m. and 4 p. m. to avoid heavy fog. Jacala.-592 miles; hotel and meals. Mexico City.-763 miles; altitude 7,347 feet; population (estimated) 1,150,930.

Acapulco-Mexico City.-Distance, 281 miles. Acapulco.Oldest port on Pacific coast, great natural harbor; broad, sandy beaches; population, 6,457; hotels. Ciudad Bravos (also called Chilpancingo).-90 miles from Acapulco; capital of State of