THE 



POPULAR SCIENCE 

 MONTHLY. 



JULY, 1886. 

 AN ECONOMIC STUDY OF MEXICO. 



By Hon. DAVID A. WELLS. 

 IV. 



TAXATION. Of all the economic features of Mexico there is no 

 one more novel, interesting, and instructive, and withal more 

 antagonistic in its influence to the development of the country, than 

 the system by which the Government Federal, State, and municipal 

 raises the revenue essential to defray its necessary expenditures. 



The general characteristics of the Mexican tariff, or system of tax- 

 ing imports, have been already noticed. But one altogether anoma- 

 lous and absurd feature of it remains to be pointed out. In all truly 

 civilized countries, when foreign articles or merchandise have once 

 satisfied all customs requirements at a port, or place of entry, and 

 have been permitted to pass the frontier, they are exempted from any 

 further taxation as imports, or so long as they retain such a distinctive 

 character.* But, in Mexico, each State of the republic has practically 

 its own custom-house system ; and levies taxes on all goods domes- 

 tic and foreign passing its borders ; and then, in turn, the several 

 towns of the States again assess all goods entering their respective 

 precincts. The rate of State taxation, being determined by the several 

 State Legislatures, varies, and varies continually with each State. In 

 the Federal District i. e., the city of Mexico the rate was recently 

 two per cent of the national tariff ; but, in the adjoining State of Hi- 

 dalgo, it was twelve and a half per cent, and in others it is as high as 

 twenty-five per cent. The rate levied by the towns is said to be about 

 nine per cent of what the State has exacted ; but in this there is no 



* The right to import is held to carry with it a right to sell on the part of the importer, 

 without further restrictions, i. e., in the original packages. Thus, the United States Su- 

 preme Court has decided that a license-tax imposed by a State of the Federal Union, as a 

 prerequisite to the right to sell an imported article, is equivalent to a duty on imports, 

 and in violation of the provision of the Federal Constitution, which prohibits the States 

 from imposing import duties ; and the decision has been carefully recognized by the 

 authorities of the several States in dealing with imported liquors under local license or 

 other restrictive laws. 



vol. xxix. 19 



