TRevenue anfc Expenses. 143 



Sources of Revenue. The Federal revenue of Mexico consists mainly 

 of three sources : import duties, internal revenue, and direct taxes in 

 the Federal District. Under the head of import duties we collect du- 

 ties on imports, extra import duties which we call additional duties, 

 and duties on exports. 



The sources of revenue of the Mexican Federal Treasury during 

 the fiscal year 1895-1896, were : 



Imposts on foreign trade $23,658,692 61 



Internal revenue 20,447,096 42 



Direct taxes in the Federal District and 



Territories 3,357>6n 81 



Public services 1,81 1,045 3 



Nominal i,955>3 01 94 



Total $5 1,229,748 08 



Import Duties. Our tariff is a highly protective one, as we have 

 always maintained a very high rate of import duties, almost prohibitory 

 for a large portion of our population, which under such a system are 

 practically excluded from the use of foreign commodities, to the ma- 

 terial detriment of the fiscal revenue, the public wealth at large, and 

 the advancement of the masses of our people. The causes which have 

 induced such a high tariff are twofold : first, that, in a great measure, 

 protective ideas have prevailed ; secondly, and especially, the need of 

 revenue, and the idea that the higher the rate of duties the larger would 

 be the revenue collected. A new source of protection has been cre- 

 ated by the depreciation of our currency, which acts as a powerful 

 protection to our home commodities, in favor of our manufacturers to 

 the disadvantage of the great body of consumers. 



The protective policy in Mexico has been so deeply rooted that 

 notwithstanding that I lean to freer trade, and that I have been three 

 times at the head of the Treasury Department, and once for five years, 

 I never was able to modify substantially that policy, because the con- 

 dition of the Treasury was so precarious, that it would have been very 

 rash to attempt any radical change on the face of a great reduction of 

 an insufficient revenue which would have brought about disastrous re- 

 sults. For the same reason I was unable to do away with the obnox- 

 ious alcabala tax. 



Our present tariff is divided into the following sections : ist, animal 

 industry ; 2d, agricultural products ; 3d, metals and its manufactures ; 

 4th, fabrics ; 5th, chemicals, oils, and paints ; 6th, wines, liquors, and 

 fermented drinks ; 7th, paper ; 8th, machinery ; 9th, carriages ; loth, 

 arms and explosives, and nth, sundries. 



