

554 



MEXICO. 



in Mexico, of 2 per cent on the tariff rate. 

 But there exists in this republic the evil sys- 

 tem of municipal and State duties on foreign 

 goods; so that when they pass through the 

 custom-house and pay the tariff, another tax 

 is laid upon them by the municipality when 

 they leave Vera Cruz; and when they are 

 brought into another State they have an addi- 

 tional import tax to pay there. This latter 

 tax, being levied by the State Legislature, va- 

 ries with each State. In the Federal District it 

 is only 2 per cent, of the maritime tariff, but 

 in the adjoining State of Hidalgo it is 12 per 

 cent, of that tariff, and in others it is as high as 

 25 per cent. This system of internal customs, 

 besides being burdensome pecuniarily, is ex- 

 tremely annoying to the merchant, as in every 



Instance the goods must pass through the local 

 custom-house, be opened and examined, and 

 the fees for handling, etc., paid. It is an evil 

 recognized and acknowledged by the enlight- 

 ened public men of the country. There is an 

 express prohibition against it in the Federal 

 Constitution, and the Supreme Court has pro- 

 nounced against it; but 'necessity knows no 

 law,' and gives very little heed to the demands 

 of political economy or of trade. The States 

 and municipalities are always hard pressed to 

 raise enough money for current expenses, and 

 in trying to solve this problem they find for- 

 eign merchandise one of the taxables most 

 easily reached ; and hence the State Legisla- 

 tures continue to set at defiance the Constitu- 

 tion and Supreme Court of the country." 



Nor are native economists blind to this un- 

 favorable state of things. " Even before I came 

 to this country," remarked Minister Zamacona, 

 in nn address to the Baltimore Board of Trade 

 in November last, " I called the attention of the 

 Minister of Finance in Mexico to the required 



reforms of several articles in our tariff, the 

 necessary reduction or suppression of duties 

 on certain articles, particularly in the various 

 branches of hardware and iron industry, and I 

 was happy to find that functionary perfectly 

 well disposed to agree with my suggestions. The 

 tendency of the Mexican Government in both 

 its branches executive as well as legislative 

 to make our tariff regulations more liberal has 

 been demonstrated in two recent instances. A 

 resolution has just been introduced in the Mexi- 

 can Congress that the tariffs be revised, with 

 the object of simplifying and of making them 

 more liberal, and at the same time the Minister 

 of Finance has had occasion during a recent 

 debate to express his ideas regarding a treaty 

 of reciprocity. A bill was under discussion 

 to exempt paper of for- 

 eign manufacture from 

 all duty. The Minister 

 of Finance opposed the 

 measure, not for its own 

 nature, but on account 

 of its isolated character, 

 maintaining that this 

 class of reforms should 

 be the result of inter- 

 national agreements re- 

 garding commercial reci- 

 procity. He spoke as 

 follows: 'I am of opin- 

 ion that the best way 

 to stimulate production, 

 trade, and wealth in 

 Mexico is to conclude 

 with those foreign coun- 

 tries with which we 

 have mercantile relations 

 treaties of reciprocity 

 upon the basis of the 

 treaty between England 

 and France. It would 

 be impossible to enter 

 into such compacts with France and Great Brit- 

 ain, since our official relations with these two 

 Powers are interrupted. But we could treat 

 with Germany and the United States, which, 

 besides being a great mercantile people, has the 

 recommendation to be our nearest neighbor.' 

 After mentioning several instances illustrating 

 the detrimental influences of lack of commer- 

 cial conventions to promote the harmonious in- 

 terests of our republic and some foreign coun- 

 tries, the Secretary said, ' This unfavorable 

 situation would suddenly change if we would 

 enter into reciprocity compacts with any indus- 

 trial power like the United States.' " 



Mexico produces common grades of woolen 

 and cotton fabrics in quantities sufficient to 

 meet the entire demand for home consumption. 

 We subjoin some statistics on this subject, from 

 an official list prepared for the American Min- 

 ister, and by him forwarded to the State De- 

 partment at Washington : Unbleached cotton 

 factories. 63, producing per annum 4,000,000 

 pieces of from 30 to 33 yards, and 12,000,000 



