History of Mexico (Bancroft)/Volume 6/Chapter 22

by Hubert Howe Bancroft

 

CHAPTER XXII.

COMMERCE AND RAILROADS.

1800-1887.

Symptoms of Free Trade — A Commercial Inroad — Exports and Imports — Customs and Custom-houses — Cabotage — Abolishment of the Alcabalas — Smuggling — The Mercantile Marine — The Carrying Trade — Commercial Regulations — Foreign Steamers — Case of the 'Danube' — First Mexican Steamships — The Mexican Transatlantic S. S. Co. — Unjust Taxation — Tariffs — Metropolitan Highways — Mercantile Tribunals — Brokers — Banks — The Mail Service — Nickel Coinage — The Decimal System — Railroads — The Mexican Railway — Development — Projected Lines — Considerations — Telegraphs, Telephones, and Electric Lights.

The permission granted in 1799, consequent upon the existing war with Great Britain, for neutral vessels to come direct from Spain to her American possessions, gave way to a still more liberal law, which held good from 1805 to 1808, but was only formally repealed May 17 and July 27, 1809. After this special permits were at times issued to private parties residing in the colonies to bring cargoes from foreign ports. Before and after the period above mentioned, other measures were enacted to do away with impediments to trade. The latest one, in 1820,^[1] was the opening of several ports on the two seas to commerce, which, if carried out, would have been a great blow to the monopoly Vera Cruz had enjoyed during three centuries. But notwithstanding that law, licit trade was continued only through Vera Cruz and Acapulco. When, however, independence had been achieved, the new government, by decree of December 15, 1821,^[2] ratified the decree of November 1820, permitting the free entry of vessels and merchandise from all parts of the world, destroying forever the system of monopoly enjoyed by the Spaniards and Vera Cruz. Other ports were opened at different times.^[3] Nevertheless, there were not wanting many who advocated a return to the old system, on the ground that the great importations of foreign goods ruined the home manufacturing industries, and deprived the poor of even their wretched means of livelihood by the introduction of the commonest articles previously made by them,^[4] while the influx of foreigners soon wrested the trade of the country from the Spanish capitalists, numbers of whom retired from business in disgust. Flooding the market with foreign merchandise caused a depression in trade, and British and European manufactures were frequently sold at prime cost. In 1821, the exports and imports at Vera Cruz amounted to $17,244,569, in 1823 only to $6,259,209.

The opening of so many ports was soon found to be inconvenient and expensive, and on February 17, 1837, a law was passed reducing their number to ten,^[5] largely increased in succeeding years. The number of ports designated for coasting trade underwent similar changes.^[6]

The stagnation in trade did not last long, an impulse being presently given to it by the recognition of Mexico as an independent nation, and in 1827 the imports amounted to $14,889,049, and the exports to $12,171,777. From this time, though commerce was subject to periodical depressions,^[7] the exports and imports of Mexico have gradually increased.^[8] The exportations of Mexico have been and still are almost entirely confined to the precious metals and raw productions, the value of the former far surpassing that of the latter, the principal of which are coffee, sugar, cochineal, hennequen, ixtle, hides and skins, timber, and dye-woods.

During the earlier years of free trade, England supplied Mexico with the largest proportion of manufactured goods, and as late as 1875 was still paramount in this respect over all other nations,^[9] owing chiefly to Mexico's great demand for cotton stuffs. But during late years, the United States has outstripped her rival.

The collection of revenue from customs has been, from the earliest days of independent Mexico, in charge of aduanas marítimas, fronterizas, and terrestres. The first named were divided into two classes, those for general commerce, and those for cabotage. Both the marítimas and fronterizas have appendages under the title of receptorías, or receiving offices. The terrestres have receptorías and sub-receptorías. At each port open to foreign trade, the government keeps a customhouse or dependency with the requisite officials. Each custom-house has a special regulation suited to its locality, besides the rules governing all. It is also provided with a comandante de resguardo, whose chief duty is to guard against smuggling.^[10] Custom-houses are, from time to time, inspected by visitadores, whose mission is to examine the books and accounts, investigate the acts of each office, and report as to the competency and attention to duty of the officials.^[11]

An aduana de cabotage, or some dependency of one, is at each of the ports open to coasting trade. Foreign vessels may also come to them direct for loading with lumber or live-stock. The frontier custom-houses have undergone many changes, several of then resulting from the change of sovereignty.^[12]

Early in August 1880, the government placed custom-houses on the frontier of Sonora at the places named, Quitovaquita, Sásabe, Nogales, and Palominas.^[13]

The aduanas terrestres were to be found in every place of any importance throughout the country. This system was a specialty of the colonial period, and was in every way burdensome and injurious to the country's industries; yet it has been continued down to December 1884, though every minister of the treasury had condemned it and propositions had been made in congress for its suppression.^[14]

In May 1882, a law was passed abolishing the alcabalas, or interstate duties, to take effect December 1,1884; yet the states, most of which obtained their principal reveuue from this source, were strongly opposed to the measure, and in October 1883, at the instigation of the president, a conference of commissioners from the different states was held at the capital, to discuss the question. A commission was appointed to draw up a report on the matter, which was laid before the conference on the 15th. In the report, it was stated that most of the states derived from the alcabalas a portion of their revenue, varying from 30 per centum to 75 per centum of the total receipts; and that many of the states had attempted the abolishment of those duties, but had failed, from the fact that the new local imposts that had been decreed instead thereof had been inadequate to meet the pecuniary requirements for governmental purposes in the locality.^[15]

With the view of preventing contraband traffic, the government of Mexico, in August 1825, decreed the establishment at convenient places of revenue guards.^[16] Later, from time to time, further laws and regulations were issued to perfect the service on the coast of both seas, and on the frontiers. On November 24, 1849, a law was passed for stationing revenue-cutters in both the gulf of Mexico and Pacific sea, with authority to overhaul suspicious vessels. Like laws were adopted between 1872 and 1878,^[17] and suitable vessels were procured.

Early in the present century smuggling was carried on, mostly at the ports of Vera Cruz, Túxpam, Tampico, and Campeche, in small vessels, bringing the prohibited goods from Jamaica. In time of war, it was not unusual to see large ships landing smuggled goods on the island of Sacrificios. Government had to relax its prohibitory system and wink at trade with neutrals. Smuggling became comparatively easy, as the customhouse officers were not too strict in their inspection of papers.^[18] In 1803 the government made use of the consulado to check the evil, but all efforts proved unavailing. In spite of watchfulness and severe penal enactments, illicit trade continued to thrive through connivance of poorly paid officials. The same state of things prevailed after the independence, and as long as the Spaniards held possession of San Juan de Ulúa smuggling operations were carried on through the castle. Very stringent laws were passed,^[19] but without effect. Officials were eager to be bribed; and if any such attempted to do his duty honorably, he either lost his position through the influence of the smugglers, or was driven from it by maltreatment and threats of death. A custom-house or revenue officer had to be accommodating. For half a century law after law was passed, each more rigid than the former, but only with very brief success.^[20] The last and most stringent one was enacted by congress in 1879, which besides inflicting mulcts, or imprisonment, declared that any commercial house or firm established in the republic, which was discovered to be engaged in smuggling, should have its signature nullified for all transactions with the public treasury, by not being accepted in any official or mercantile act at government offices. But the evil seems eradicable. It is estimated that at the present time the loss to the government amounts to $3,000,000 annually. This illegal traffic is extensively carried on along the northern frontier.

At each principal port is stationed a capitan de puerto, whose duties are both of a civil and naval character. He has charge of the police force, and it is incumbent upon him to support and aid the customs authorities. In case of shipwreck, it is his duty to save and take care of stranded property; and if it is foreign, he has to call for the coöperation of the consular agent, should there be one at his port.^[21]

The national mercantile marine received a fostering care on the part of the government from the earliest days of the republic, especially the coasting trade, foreign vessels being only allowed to carry goods from one Mexican port to another, when there was no Mexican vessel at the port of departure bound to the same destination.^[22] In 1830 Mexican citizens were permitted to purchase foreign-built vessels and place them under the national flag, but it was required that the masters, officers, and at least two thirds of the crews should be Mexican citizens. Nor was any vessel under the Mexican flag to be owned by a foreigner. In January 1856, certain allowances were decreed to Mexican vessels engaged in foreign trade;^[23] and in December 1883 a decree was passed aiding the development of the national mercantile marine by the reduction of importation duties.^[24]

With regard to the carrying trade, the United States has always far surpassed England and all other nations. In 1826, 399 vessels under the United States flag entered Mexican ports, against 55 English; in 1851, 435 American, 108 English, and 296 vessels of other nations entered. The subjoined tables supply shipping statistics for later years.^[25] During the fiscal year 1883-4, no less than 1,241 vessels freighted with merchandise entered the ports of the republic, besides 442 in ballast.^[26]

The regulations to govern merchant vessels visiting the ports of Mexico have been subjected to changes from time to time, since the establishment of the republic. The following were for the most part in force in 1887. A merchant vessel is considered to have arrived, when she has entered the territorial waters of the republic, and no person can go on board except the pilot, until she has been visited by the officer of the board of health, and by the custom-house officials. Invoices and manifests must be authenticated by the Mexican consular representative at the port of departure; or in the absence of such agent, by two responsible merchants. These documents must be made in triplicate,^[27] and be accompanied by receipts, on separate paper, for the payment of consular fees for authentication of invoice and manifest, which must contain an exact detail of quantity, kind, quality, and value of each class of goods in the cargo. The goods, moreover, must be put up in separate packages, according to the classification of the tariff. If this requirement is not followed, the highest duty is charged on all goods in the same packing-case. Masters of vessels are required to produce their ships' registers, crew lists, and documents establishing their nationality.^[28] In 1884 bonded warehouses were for the first time established in Mexico, a decree permitting the entry of bonded goods being passed March 25th.^[29] Peculiar privileges were conceded to foreign steamers before they became commercial carrying vessels. The first vessels of this kind belonged to the Royal Mail Steamship Company, and the same exemptions were granted them as to men-of-war, being free from tonnage and port dues, and from visits by customhouse officers. They were allowed to import quicksilver and goods on the free list, and export cochineal and the precious metals. The courier of the British legation conveyed, free of charge, the government mail, between the capital and Vera Cruz, in return for the privilege granted the company of receiving correspondence of merchants free of postage charges.^[30] The privileges granted the company were frequently abused by contraband proceedings, a flagrant case occurring in March 1868, when the captain of the Danube sailed out of port in defiance of the authorities, with a quantity of gold that had been smuggled on board.^[31]

The first steamers possessed by the Mexican government appear to be two, which arrived in Vera Cruz in August 1842, and which had been built in London. In 1845 a small one also plied between Sisal and Vera Cruz. During the last half of this century, many liberal concessions have been granted steamship companies, among which may be mentioned that to the Panama and California steamship company in 1849, allowing vessels to land and receive passengers and coin at the ports of Acapulco, San Bias, and Mazatlan. In 1856 a. line was established between San Francisco, California, and the ports of the Pacific. For a number of years England, owing to the dilatoriness of the United States government in encouraging steamship service, enjoyed an unrivalled monopoly of it on the Atlantic side, giving her a corresponding preponderance in trade with Mexico; but in 1860 and 1861 congress was at last aroused, and with such satisfactory results that at the present date the steamships plying between Mexican and United States ports are owned and controlled by American companies. The effect on the trade between the two countries is evidenced by the fact that the United States receives by far the greater portion of the exports from Mexico.^[32]

During the first administration of Porfirio Diaz, great impulse was given to the establishment of steamer lines. When he assumed office there were but three lines subsidized; at the end of his term there were eight.^[33] In 1883 the first national enterprise for transatlantic navigation was undertaken, and a company was organized under the title of the Mexican Transatlantic Steamship Company. Three iron steamers, each about 4,000 tons burden, were built, and run monthly between Vera Cruz, England, and Italy. The company obtained a large concession from the government under contract to convey immigrants to Mexico at low rates.^[34] In colonial times, the imposts levied on Spanish produce or manufactures, and especially on foreign goods, which had to come via Spain, upon their being exported thence to America, were very heavy — no less than 361/2 per centum on the latter.^[35] The republic, in her admission of foreign produce and manufactures, pursued the policy of protecting home industries, even to the extent of prohibiting every article of commerce that might be detrimental to them. Thus by the provisional tariff of December 15, 1821, tobacco, raw cotton, some breadstuffs, manufactured wax, spun cotton of certain numbers, and several other manufactured articles were not allowed to enter. Several modifications were made between that year and 1830. The tariff law of 1827 established excessively high rates, forbidding the importation of raw cotton and common yarn. Still further changes were made between 1837 and 1845.^[36] The illiberality noticeable in the early tariffs is exhibited by the fact that the rates were fixed so as to fall lightly on the rich and heavily on the poor. Nearly two months' wages every year had to go to pay for the cotton cloth worn by the Indian laborer and his family, if indeed they wore cloth; while a half-day's income covered all that the government received from duties on articles consumed by the rich man, or by a convent of friars.

Between 1845 and 1856 several changes occurred, among them the liberal one of 1848, and the famous order of Santa Anna, in 1854, under which he established a prohibitive discrimination against nations having no commercial treaty with Mexico on the basis of reciprocity; it was repealed by the liberal government that deposed him, on the 9th of January, 1856.^[37] On the 31st a new tariff was issued, lowering the duties from the standard of that of 1853. The import dues were classified import and additional, the latter being equivalent to about 75 per centum on the amount of the former.^[38] In May 1858 the permission was given to import cotton through Vera Cruz by paying one dollar and a half per hundred pounds. On the 17th of March of the same year the governor of Tamaulipas had decreed the zona libre by which, in the towns

on the Rio Grande, within that state foreign goods were exempted from duty and other charges.^[39]

Under the different tariffs enacted, the produce and manufactures of the country have been generally exempt from export duty. The precious metals, however, from the earliest periods of the republic, have been subject to an exportation tax, varying on gold from three to one half per centum, and on silver from ten to five per centum, the lowest rates having been fixed by congress in 1882. The exportation of gold and silver bullion has been often forbidden, and at times allowed, the latter being the case under the last-mentioned decree of congress. Occasionally, a small duty was levied on national produce, as in 1853, when eighteen articles were taxed, such as live-stock, raw wool, hides, salt beef, lard, etc.^[40]

During Maximilian's reign, various decrees were passed concerning import dues, all of which were ignored by the republican government after his fall. On January 1, 1872, a new tariff was established, which in March 1877 was declared to be still in force, together with the orders issued during the interval. This law removed all prohibitions, and foreign goods of every kind were allowed to enter on payment of the duties assigned to them.^[41] Again, in November 1880, the tariff was altered, and being modified by a presidential decree of June 25, 1881, went into force November 1st following. Lastly, President Diaz, by decree of January 24, 1885, proclaimed a new one, to go into operation July 1st following. This tariff surpasses all previous ones in simplicity, is much shorter than the one which preceded it, and has been most acceptable to the mercantile community, from the fact that it has abolished all the vexatious special percentages which had been exacted before, especially the bulto or package duty. In many cases there is an increase in duties, but not as a whole, the special duties that used to be exacted in addition to those marked down in the schedule having been done away with. The free list is curtailed, but many articles erased from it only pay a nominal duty.^[42]

 

While Mexico was extending her connection with foreign lands by sea, attention was being given to means of internal communication for the benefit of trade at home. The physical formation of the country offers few facilities for the construction of highways leading from the coast to the great central plateau; and thus it was that the capital, being connected with the principal port by the finest road in Mexico, became the great centre of radiation.^[43] On the table-land, however, excellent facilities are offered, and the interior is intersected by innumerable roads and mule-trails. During the war of independence, they fell into disrepair, and for a lengthened period were chronically bad, and the traveller, besides being exposed to the danger of robbery and assassination, incurred no little risk of a broken neck.^[44]

Unsatisfactory as was the condition of the Mexican highways for a long period, the tolls were exceptionally high, and both merchandise and passengers were subject to extortionate charges made by contractors for the peaje dues.

The opening of free trade to foreign countries entailed changes in the system on which internal commerce had been previously conducted. The foreign traders who invaded the country, being all commission merchants, abolished the custom of employing intermediate agents between themselves and their customers, and forwarded their goods directly to the purchasers. Wholesale business at the great commercial fairs between importers and the merchants of the interior gradually ceased, and was supplanted by retail system of trade, carried on by country store-keepers and dealers.^[45] Foreigners, however, were excluded from engaging in this trade.^[46] An approximate result only of the annual amount of internal commerce about the middle of this century can be arrived at; but Lerdo de Tejada, in his work entitled Cuadro Sinóptico, published in 1856, taking as his basis the produce of agriculture, industries, mines, and cattle, and the value in the interior of foreign merchandise, calculated that it exceeded $100,000,000 annually at the time he wrote.

In 1824 the tribunal del consulado, or commercial, was abolished,^[47] the supreme government assuming certain powers. In 1841, mercantile tribunals were established by decree in all capitals of departments, and in those ports which were open to foreign trade. These courts were composed of a president and two colleagues,^[48] and before them were tried all suits arising out of commercial transactions, their jurisdiction extending to cases of bankruptcy:^[49] When fraud was detected, the case was to be handed over to the criminal court. In urgent cases, these tribunals had the power to secure the persons of suspected individuals when their escape from justice was apprehended.^[50]

A corporation of brokers, Colegio de Corredores, was established in 1842, with a governing council of a president and four associates,^[51] whose duty it was to arrange differences arising between brokers and merchants, examine the books of members suspected of irregularities, and pass candidates for entrance into the profession. In 1854, a commercial school or business college was inaugurated.

Previous to the independence, no banking establishment, properly so called, existed, and the first bank founded in Mexico was the banco de avío, before mentioned, in 1830. It was short-lived, however, and in 1837 a national bank was established.^[52] More lately several banks have been established to meet the requirements of the increasing foreign trade,^[53] and banking houses have been opened, and saving banks founded, in most of the important cities. Several life and general insurance companies have also opened offices in the capital.

The postal service for many years after the independence was conducted in a most unsatisfactory manner, the mails being irregular and correspondence being frequently lost or miscarried.^[54] Foreign mails to Europe and the United States were principally carried by the English steamers, and it was not until May 1862, when a mail line of steamers was established between Mexico and the United States, that the postal convention agreed upon came into operation.^[55] Since that time, the system has gradually improved and the service increased. Within the last few years the system of post-office orders has been adopted, and has gained popularity. At the beginning of 1884 a new postal code went into effect, by which the rates of postage were reduced; ^[56] the sale of stamps, hitherto greatly restricted, was made free; and an urban service was organized upon the basis of the best systems known.^[57] The new urban system has met with much favor in the metropolis, and under the able management of Postmaster Lino Nava, the carrier service is excellent, and the delivery prompt and accurate.

 

Congress having decreed the coinage of $4,000,000 of nickel pieces of one cent, two cents, and five cents, these coins were distributed proportionately throughout the republic, as they were issued from the mint. In order to promote a favorable acceptance of them, they were made receivable at the custom-houses in any quantity. The result was, that large sums of the new coinage were withdrawn from circulation by speculators, who, discovering that an opportunity of profit was offered, collected them in great quantities and flooded the government offices with them.^[58] Consequently, the government felt compelled to limit the admission of them in payment of dues, which had the effect of depreciating their value to the extent of from 4 per centum to 50 per centum. This caused a grievous loss to the poor, and in December 1883 a serious riot occurred in the capital. Finally, on April 7, 1884, the president by decree declared the coin no longer receivable in payment of duties, and prohibited the government offices from making any payment in nickel.

Steps have been taken to introduce the decimal system of weights and measures. In 1883 a law was passed to that effect, assigning January 1, 1886, as the date when the new system should be put in operation. By a congressional act, however, passed in 1885, the time was postponed to January 1, 1888.^[59]

 

The necessity of extensive systems of railroads in Mexico has in late years become obvious, not only to the Mexican government, but to a large portion of the inhabitants, and perhaps no other country will be found to reap more marked benefits by the establishment of these means of communication. In a land whose rivers afford but few facilities for navigation, and whose physical conformation is such as to preclude the construction of canals or even good roads, the drawbacks to commercial enterprise were one of the chief causes of such slow progress in Mexico.

The first railway project in Mexico was that for the construction of one from Vera Cruz to the capital, and it began to be advocated soon after the year 1830.^[60] Strong objections, however, were raised to the establishment of such lines, on the ground that they would throw out of employment so many thousands cf muleteers, and others who gained their livelihood by the transportation of goods. Nevertheless, by decree of August 22, 1837, President Bustamante granted to Francisco Arrillaga the exclusive privilege of building a railroad from Vera Cruz to the city of Mexico;^[61] but the concession was afterward declared forfeited, as the projector failed to begin the road. On the 31st of May, 1842, Santa Anna reëstablished the abolished tax, called the avería, and appropriated the proceeds to the construction of the railway. A contract was entered into with Antonio Garay, a Mexican by birth, and the work was at last commenced;^[62] but progress was slow, and by no means corresponded with the outlay;^[63] nor was it until Antonio Escandon obtained in 1857 a franchise to construct a line from Vera Cruz to a port on the Pacific, that any energetic interest in the undertaking was shown.^[64] Still, active operations were for some time prevented by the troubles of the nation; and revolutions and the French intervention rendered it impossible to resume work before 1865.^[65] After that time, though various difficulties periodically affected the enterprise,^[66] the work was pushed vigorously forward under the direction of Engineer Buchanan, and 134 miles had been completed when the republic was restored by the fall of Maximilian. At the end of 1872, this line, which is called the Mexican Railway, was so far advanced that it was opened on the 1st of January, 1873, by the president of the republic, Lerdo de Tejada, with due solemnities and accompanying festivities.^[67]

Although occasionally efforts were made to cause its abandonment, by damaging the tracks and rolling stock,^[68] opposition gradually yielded. There already existed, it is true, a number of short disconnected railway tracks, scattered throughout the country, especially in the neighborhood of the city of Mexico; but these were of no service to commerce, and were merely crude native efforts in different localities, many of them being mere tram-ways, on which mules were the motive power. The ultimate triumph of the projectors of the Mexican Railway impressed alike presidents, ministers, and the enlightened portion of the public. They perceived, at last, that extensive railroad systems were a necessity for the progress of the country; that through-lines, placing the distant regions of the interior in easy communication with the capital, extending northward to the United States, and connected in course of time with interoceanic lines, would develop the boundless resources of their country, and procure for Mexico the means of reaching all the great commercial markets of the world. An enlightened policy followed hand in hand with this conviction. During the progressive administrations of Lerdo de Tejada and Diaz, every encouragement has been given to promoters of railroad enterprises. Many concessions were granted, with liberal subventions by the Mexican government.^[69] It is, however, to American enterprise that Mexico will be principally indebted for the eventual opening of her railroad systems. With the exception of the Mexican Railway, which is in the hands of an English company, all the great arteries and principal branch lines are controlled by United States capitalists, to whom many of the minor concessions have been sold. That citizens of the United States should have acquired such important interest in the nation's future welfare has naturally created some alarm among the Mexicans, which time and intercourse will doubtless obliterate.

The great central plateaus of Mexico, with their extensive level plains and gently undulating elevations, afford unusual facilities for the rapid construction of long trunk lines connecting the south of Mexico with all important points on the United States frontier. Three such lines have been planned; namely, the Mexican Central, the Mexican National, and the International. Of these the main line is the Mexican Central, traversing the great dorsal ridge of the high table-land. This project was nominally commenced in June 1880, when the company began to grade from the capital northward toward Leon, in Guanajuato,^[70] but it was not until late in the year, after the company had obtained their charter for the whole line,^[71] that determined work was begun, when it was pushed vigorously forward at both ends of the line.^[72] Its northern terminus is Paso del Norte. The route extends through the states of Chihuahua, Durango, Zacatecas, Aguascalientes, Guanajuato, and Querétaro, to the city of Mexico. The company, moreover, possesses the right to build an interoceanic cross-line extending from San Blas, on the Pacific coast, to Tampico. When this is completed, with all the ramifications of branch lines to important towns, it will embrace in its iron mesh twenty-one principal cities, the populations of which, including Mexico, amount to 1,000,000 in number.^[73] In the construction of the Mexican Central, some difficulty was encountered in obtaining egress from the valley of Mexico, as also in surmounting the rocky ridges in the states of Guanajuato and Zacatecas, but the intervening valleys and the immense plains extending farther north offered little opposition to engineering skill. On March 8, 1884, the line was completed, the two sections uniting near Fresnillo.^[74]

The narrow-gauge line, known as the Mexican National, or Palmer-Sullivan,^[75] has its northern terminus in Laredo, on the Texan frontier, and will connect with the capital, by passing along the eastern slope range. Unfortunately, the company, after expending large sums of money, was obliged to close its operations through want of funds. Up to 1887, the line, in running order, had only reached Saltillo, but a considerable amount of preliminary work had been done southward.^[76]

Between these two great highland thoroughfares there lies a stretch of level table-land which has not escaped the eye of the engineer, and a third trunk-line has been planned, known as the International.^[77] This line commences at Piedras Negras on the Rio Grande, and will pass through the state of Coahuila to the city of Zacatecas, thence to Celaya and Mexico. The concession grants the company the privilege of constructing a cross-line from a point between Tampico and Matamoros, on the gulf coast to another between Mazatlan and Zihuataneco on the Pacific. The object of each of these three companies, it will be observed, is to have an interoceanic line in connection with the main trunk. Mention must be made of the Sonora line,^[78] already completed, which connects Nogales on the northern frontier with Guaymas, passing through Magdalena and Hermosillo.

Among the projected lines in 1877 were the Pacific Coast Railroad,^[79] which covers a stretch of over 3,000 miles, the object of the projectors being to connect the whole series of ports lying on the Pacific coast between Fort Yuma and the republic of Guatemala. It is even asserted that the design is entertained of extending this railroad down the whole extent of the Pacific coast to Valparaiso. Another important project was the Topolobampo route,^[80] from Piedras Negras on the Texan frontier to the port of Topolobampo on the gulf of California. This company claims that its transcontinental route will connect Australia and Asia with the United States and the great European ports of exit by a shorter distance than any other designed line. The port of Topolobambo exists only on paper, but there is an indenture in the coast at the point which has been selected for the western terminus, which suggests the opening of a new harbor of great capacity. Among the failures, we may mention the Mexican Southern, or Grant's line, embodied with Jay Gould's Oriental line. The concession was declared void May 29, 1885.^[81]

Other ramifications have been designed, connecting city with city, and all important districts with each other. Instance the Morelos railway, intended to extend from the capital, through that city, to Acapulco; then the Tehuantepec Interoceanic, which retroceded to the Mexican government.^[82] The importance of this scheme can hardly be overestimated, as it will save a distance of over 1,400 miles between New York and San Francisco, as compared with the Panamá route.

In connection with this important isthmus, Eads' scheme of connecting the two oceans by a ship-railway must be mentioned, but which may be regarded as somewhat visionary.^[83]

The ownership of these railroads by capitalists of the United States was regarded by some dangerous to the integrity of the nation. But there was indeed little to fear.

Telegraphic communication in Mexico was antecedent to that of railroads. In 1849 the exclusive privilege of establishing telegraph lines was conceded to Juan de la Granja,^[84] and in the month of December 1851, the first telegram was transmitted — between Mexico and Puebla, the line being completed to Vera Cruz during the following year. From this time these means of communication have increased rapidly, and the federal government has erected wires throughout the country.^[85] These lines are now in communication with the telegraphic systems of the United States.

In 1870–1 the government extended grants and promised aid in the laying of submarine cables,^[86] and in this manner Mexico became connected with the United States, Central America, and South America.

Street railroads,^[87] telephones, and electric lights are being introduced with a rapidity proportionate to other progressive movements in Mexico.

 

 

1. Aug. 10, 1804, the reëxportation of goods to other open ports was allowed. Jan. 16, 1806, vessels from Spain were permitted to enter and discharge at intermediate ports. During the war of independence, various ports were opened to trade at different dates: Sisal in 1810; San Bias in 1812; Tampico in 1816; and finally, in Nov. 1820, the Spanish córtes decreed the opening of the ports of Tlacotálpan, Matagorda, Matamoros, Soto la Marina, and Pueblo Viejo de Tampico in the gulf, and Acapulco, San Bias, and Mazatlan on the Pacific. Cortes. Diario, 1811, v. 337; 1820, vi. 15-18; xi. 28; Cortes, Act. Pub., 1820, ii. 1; Gaz., Gob. Mex., 1816, vii. 685-8; Arrillaga, Informe, 1-8; Abispa de Chilpancingo, 427-39; Niles' Reg., xix, 396; Alaman, Hist. Mej., iv. 473-4; Lerdo de Tejada, Com. Est., 21; Manero, Notic. Com. Mex., 19-20.
2. Mex., Col. Dec. y Ord., 143-51; Mex., Mem. Hac., 1838, pt 1, 6; Prieto, Breve Estud., 17.
3. Huatulco in 1824, Manzanillo in 1825, Tuxpan and Tampico in 1827, besides others later. Mex., Col. Ley., Óril y Dec., iii. 44; Guia de Hac., iv. 38-9, 233-4; v. 46–7; vi. 18-19.
4. 'No ha perdonado, 'foreign trade, 'ni á las infelices costureras que vivian de coser camisas ni á los misinos léperos que. . . buscaban su pambazo y su chinguirito en el portal, llevando trompetitas de caña para los muchachos'. Fisiologia Gosa. Púb., 37.
5. Namely, in the gulf of Mexico, Vera Cruz, Santa Anna de Tamaulipas, (Tampico), Matamoros, Campeachy, Sisal, and San Juan Bautista de Tabasco; in the Pacific, Acapulco and San Blas; in the gulf of Cal., Guaymas; in Upper Cal., Monterey, Bacalar, Goazacoalco, Alvarado, Matagorda, Galveston, Huatulco, Manzanillo, Natividad, Mazatlan, La Paz, Loreto, San Diego, and San Francisco, heretofore open ports, were to be closed six months after the publication of the decree. A number of others was added to this list in succeeding years down to 1873. Arrillaga, Recop., Jan. to Apr., 1849, app. 4, 120; Dublan and Lozano, Leg. Mex., vi. 168; viii. 650; ix. 172, 217, 317, 548; x. 258; Archivo Mex., Col. Ley., i. 517; Sin., Bol. Ofic., May 31, 1872, 249; Mex., Diar. Ofic., Dec. 25, 1870; Mex., Mem. Hac., 1873, 8; Mex., Diar. Debates, 10th Cong., iii. 916; Tovar, Hist. Parl., iii. 321, 411, 804, 844.
6. Arrillaga, Recop., 1837, 86-7; Jan. to April, 1849, app. 120; May 1849 to April 1850, 302, Mex., Legis. Mej., 1850, ill, Jan. to June 1836, 352; Dublan and Lozano, Leg. Mex., x. 217. In 1876, the following were the coasting trade ports: in the gulf of Mexico, Alvarado, Balancan, Nautla, Santecomápan, Soto la Marina, and Tecolutla. On the Pacific, Agiabampo, Altata, Bocoréhuis, Cabo de San Lucas, Chamala, Libertad, Navachiste, Puerto Escondido, San José del Cabo, Tecsanapa, and Zihuatanejo.
7. The years 1840, 1941, and 1857 are instances. Niles' Register, lvii. 353; Otero Obras, MS., i. 111-26, 242; Diario Avis., June 12, 1857, 3.
8. The importations for the year 1881 amounted to $44,991,401, and the exports to $24,879,211; for the nine months ending March 31, 1883, the exports reached $32,298,294, of which $24,032,787 were silver, and for the year ending June 30, 1884, $46,725,496, of which $33,473,283 represented the precious metals. Mex., Mem. Hac., 1884, xliii. xlvii.; Diario Ofic., Jan. 27, 1885; Mex., Financier, Jan. 31, 1885, 285-6; Zaremba, Merchants, 4.
9. The following table of importations during the fiscal year 1874–5, derived from official documents, will make this apparent:
    

   France-Cotton goods	$344,732
   Miscellaneous merchandise	2,752,258
   	—————	$3,096,990
   Germany-Cotton goods	$199,750
   Miscellaneous merchandise	806,013
   	—————	1,005,763
   England — Cotton goods	$5,109,231
   Miscellaneous merchandise	3,547,932
   	————	8,657,163
   United States-Cotton goods	$1,674,184
   Miscellaneous merchandise		3,354,451
   	—————	5,028,635
   Spain-Cotton goods	$2,374
   Miscellaneous merchandise	912,534
   	—————	914,908
   South America-Cotton goods	$49,065
   Miscellaneous merchandise	140,966
   	—————	190,031
   		—————
   Total		$18,793,490

   Busto, Estad. Rep. Mex., i. 4ta pte, 115-17. The above figures are those on the face of the invoices. On the entry of goods into Mexican ports, the invoice figures were raised to the valor de plaza upon which the duties were calculated. The valor de plaza corresponding to this total of $18,793,490 was $27,300,855. The system of raising the invoice prices of merchandise was employed in order to prevent fraudulent evasion of the duties by exhibiting fictitious invoices.

10. He is required to keep the government promptly advised of vessels arrived, together with their cargoes and other particulars, including the lists of passengers, and their nationality, trade, and occupations.
11. They also report upon the ports and the facilities afforded for smuggling, with such suggestions as each case may demand. Arrillaga, Recop., May 1849 to Apr. 1850, app. 310-23.
12. There were the following in 1876: on the northern frontier, Altar, Camargo, Guerrero, János, Magdalena, Matamoros, Mier, Monterey, Laredo, Paso del Norte, Piedras Negras, Presidio del Norte, Reinosa, and Tijuana; on the southern frontier, Soconusco and Zapaluta. Arpéroz, Cód. de Extrang., 46-7. The following are the custom-houses declared open to foreign trade by decree of Jan. 24, 1885: Pacific coast — Soconusco, maritime and frontier, Tonala, Salina Cruz, Puerto Angel, Acapulco, Manzanillo, San Blas, Mazatlan, Altata, Guaymas, La Paz, Cabo de San Lucas, Bahía de la Magdalena, Todos Santos. Gulf of Mexico — Matamoros, maritime and frontier, Tampico, Tuxpam, Vera Cruz, Coatzacoalco, Frontero, Isla del Carmen, Campeche, Progreso. North frontier — Tijuana, Quitovaquita, Nogales, Sásabe, Palominas, Ascencion, Paso del Norte, Piedras Negras, Loredo, Guerrero, Mier, and Camargo. South frontier — Zacatula. In 1884 an inspector-generalship of frontier custom-houses was created. Mex., Mem. Hac., 1884, Doc. 22; Mex., Diario Ofic., Feb. 11, 1885.
13. Approved by congress in 1881, and $17,800 appropriated for salaries. Diario Debates, 10th Cong., ii. 970.
14. Tovar, 2d Conf. Const., 127; Diario Debates, 8th Cong., i. 399.
15. Mex., Mem. Gob., 1880-4, p. x. and doc. 3; Bol., Of. Gob. B. Cal., June 10, 1882, 1-2; Mex., Mem. Hac., 1884, pp. xxxv.-xxxviii.
16. Mex., Guia de Hac., iv. 231-2, v. 3-4. During the Spanish rule, the government kept armed vessels on the coasts of America. Cortes, Diario Ofic., ii. 122.
17. Mex., Col. Ley. y Dec., 1839, 163-4; Arrillaga, Recop., 1839, 117, 169-70, 302–3; 1847, 182–3; Mex., Legis. Mej., Jan.-Dec. 1850, 166-74; 1851, 276-86; Jan.-June 1856, 428; Sin., Boletin Ofic., May 23, 1872, 234-5; Dublan and Lozano, Leg. Mex., xi. 108-21; Mex., Diario Debates, 7th Cong., i. 173, 376, 525-8, 648-9; iv. 335-6; 8th Cong., iii. 200.
18. Probably in time of peace the value of smuggled goods was of four to five million pesos; in time of war, of six to seven million pesos.
19. When the amount defrauded should exceed $500, the name of the person and his offence were to be published in the newspapers; for a second offence, suspension of his citizen rights for five years; for a third offence, banishment from Mexican territory. The expulsion from the country might be applied for the first offence to foreigners. Those penalties were in addition to those prescribed in the tariff regulations. The law having fallen into disuse, the government reiterated it March 23, 1831. Arrillaga, Recop., 1831, 222-3; Mex., Col. Órd. y Dec., ii. 169-71; Mex., Mem. Provis., 1823, 13-15.
20. Arrillaga, Recop., 508-11; Espos. Comercio Guadal., 4-6; Inform., Est. Empl. S. Blas, 12; Mex, Col. Ley. y Dec., 1839-40, 824-9; Mex., Legis. Mej., 1851, 335–8; Jan. to June 1856, 419; Mex., Col. Ley. . .Órd., Jan. to May 1854, vi. 24–5; Archivo, Mex., Col. Ley., i. 802; iii. 1062-5; Mex., Espos. Hac., 16-17.
21. Azpiroz, Cód. de Estrang., 104; Mex., Leg. Mej., Aug. to Dec. 1853, 112-16; Mex., Col. de Ley. . .Ord., Sept. to Dec. 1853, 22-5.
22. They could also at all times, after discharging cargo and paying duties, transport passengers and their baggage, or mails, but nothing else. Azpiroz, Cod. de Estrang., 111; Arrillaga, Recop., 1830, 393-4, 443.
23. Four dollars per ton to vessels of over eighty tons bringing foreign merchandise to Mexico from ports of the American continent or Islands, and $8 to those of over 100 tons bringing such merchandise from ports in Europe, Asia, Africa, or Australia. A receipted bill for the amount thus awarded was to be accepted at the custom-house in part payment of the cargo's duties. The law was to have effect during the next five years. Archivos Mex., Col. Ley., i. 438-40. A law of Nov. 24, 1868, ordered the establishment of two nautical schools, one in Mazatlan and one in Campeche, and granted builders of Mexican vessels, exceeding 100 tons burden, a subvention of $15 per ton. Mex., Mem. Hac., 1870, 813.
24. Namely, 2 per cent on goods brought from any foreign port; 4 per cent on goods from Asiatic ports to the Pacific coast of Mexico, by irregular voyages, and 8 per cent by regular steamer lines. Mex., Mem. Hac., 1884, pp. xvii.-xviii.; Diario Ofic., Dec. 13, 1883.
25. The entries were as follows:

    	Vessels.		Tonnage.
    1869 — American	371		531,194
    English	150		87,779
    Other nations	337		97,059
    Mexican	2,473		110,673
    Totals	3,331		826,705

    These vessels conveyed 7,146 passengers to Mexico.

    	Vessels.		Tonnage.
    1870 — American	328		386,176
    English	163		75,461
    Mexican	2,155		108,641
    Other nations	304		98,783
    Totals	2,950		669,061

    These vessels conveyed 6,780 passengers.

    	Vessels.		Tonnage.
    1871 — American	299		371,040
    English	165		91,951
    Mexican	1,978		98,408
    Other nations	311		92,343
    Totals	2,753		653,742

    These vessels conveyed 6,294 passengers.

    Departures:

    	Vessels.		Tonnage.
    1869 — Foreign	830		664,917
    Mexican	2,489		104,722
    1870 — Foreign	801		559,543
    Mexican	2,140		100,008
    1871 — Foreign	752		446,398
    Mexican	1,906		105,617
    Total for the 3 years	8,918		1,981,205

    Mex., Mem. Fomento, 1873, annexes B, C, & D. Comparing the number of Mexican vessels and their corresponding tonnage with that of foreign vessels and their tonnage, it will be seen that the former were of smaller burden, owing to the fact that the Mexican mercantile marine consists principally of small coasting craft, with but few ocean-traversing bottoms.

26. Mex., Mem. Hac., 1884, pp. xix.-XX. These numbers of course do not include the coasting vessels.
27. Must have no interlineations, erasures, or corrections, such alterations subjecting the shipper to fines of from $50 to $200. Cargo thrown overboard during stress of weather must be reported on arrival. Azpiroz, Cod. Estrang., 112-14. If the consular receipts are wanting, double duties are charged.
28. As a rule, a sailing vessel pays for pilotage and anchorage fees, in the regular ports $25, and in those of cabotage $12. Steam vessels for pilotage and anchorage in the regular ports $30, and in the minor ones $20 harbor-masters' fee and $31/2 — not collected from fishing vessels or other small craft plying within the port. Other clues paid are those of tonnage and light-house, from which several exemptions are allowed in favor of passenger-steamers, whalers, and other vessels entering ports for supplies or repairs. Mexican vessels are exempted from paying tonnage dues. Id., 108-10; Manero, Notic. Cons. Mex., 21.
29. Mex., Mem. Hac., 1884, doc. 15; Diario Ofic., March 25, April 24, 1884.
30. By decree of July 28, 1841, British steamers were granted an exemption from import and export dues for ten years, at Vera Cruz and Tampico, on coal for their service. In Sept. 1843, France claimed the same privileges for French steamers as those granted to the English company. The claim was acceded to in Dec. of the same year. Azpiroz, Cod. Estrang., 284-5.
31. The president, in consequence, issued new regulations with regard to English steam-ships. In future, if they brought merchandise, they would be considered as merchantmen, though still exempt from dues in consideration of their mail and passenger service. Steamers not bringing merchandise remained in full enjoyment of existing privileges. The Danube would only be allowed to land passengers and mails, until the captain gave satisfaction for his conduct. Dublan and Lozano, Ley. Mex., x. 290-1.
32. Bustamante, Hist. Sta Anna, 69; Registro Yucateco, i. 119-20; Mex., Legisl. Mej., 1849, 11-13; Pensamiento, Nac., Feb. 17, 1856. During the fiscal year 1883-4, the exportations to the U. S. amounted to $21,824,400, while those to England amounted to $19,330,152. But the proportion of goods received by England is small, the principal export to that country being the precious metals. Mex., Mem. Hac., 1884, p. xliv.; Mex. Financier, Feb. 14, 1885, 319.
33. Mex., Diaz Informe, 13. The three principal ones are the Alexander lines, plying between Vera Cruz and New York, and between Vera Cruz and N. Orleans, and the Morgan line, plying between the two last-named ports, and touching at Galveston, Texas.
34. Diario Ofic., Oct. 12, 1883; Monit. Repub., Aug. 20, 1885. The first vessel, the Tamaulipas, was launched at Glasgow, Oct. 18, 1883; Pan. Star and Herald, Nov. 15, 1883; Mex. Financier, Nov. 3 and Dec. 29, 1883. The names of the other two vessels are the Oajaca and Mexico. The two first are named after the states in compliment to generals Gonzalez and Diaz, respectively. During the period 1882-7, many contracts and concessions were made, of which the principal are that with Andrade, to establish a line in the gulf of Cal.; the concession to the Cal. Steam Navigation Co. to ply between S. F. and Mazatlan; that to Larraza et al. for a Transpacific line; the contract with the Sonora R. R. Co. for a line between Guaymas and Manzanillo; that with Bulnes Bros. for one between Bagdad and Progreso, touching at way-ports; that with Joaquin Redo for a line between Guayınas and Manzanillo, and way-ports; and the concession to Garma et al. for an ocean line between Vera Cruz and Buenos Ayres. Estad. de Sin., Feb. 17, 24, 1882; Diario Ofic., Oct. 30, Nov. 15, Dec. 18, 1883; March 13, Oct. 15, 1884; Jan. 15, March 3, 30, 1885; Mex., Recop. Leyes, xxxv. 883–6; xxxvi. 150-5; El Cronista, S. F., Apr. 26, Dec. 13, 1984; Apr. 23, 1885; El Siglo XIX., Jan. 20, 1885; Mex. Financier, Apr. 4, 18, 1885.
35. Namely, introduction into Spain, 15 per 100; internacion, 5; consolidation of royal warrants, 5; almirantazgo, 2; almojarifazgo, 7; consulado, 1; war subvention, 11/2; reemplazos, l; Guadalquivir canal, 1/2. Total, 361/2. per cent, which constituted the revenue of Spain, drawn indirectly from the colonies; and adding it to the import and consumption duties collected in Mexico, we have an aggregate of about 65 per cent; hence the wealthy only could purchase imported goods. Cochineal had to pay the enormous export duty of $41.30 for every 25 pounds.
36. The tariff of March ll, 1837, permitted the importation of many articles forbidden in that of 1830, but was illiberal in other respects. That of 1842 augmented the prohibitions, and the tariff of April 1813 increased 20 per cent the duties established in the previous year. A law of Feb. 28, 1843, established a bonded warehouse in Acapulco, with a reduction of the duties on goods imported through it. Guia de Hac., iii. 30-51; iv. 252-3; vi. 140-216, 287-99; Mex., Col. Ley., Ord. y Dec., iii. 47–50, 139; Arrillaga, Recop., 1837, 85-120, 144-92; Vallejo, Col. Doc. Mex., i. no. 64; Mex., Col. Ley. y Dec., 1839, 240-5; Manero, Not. Com. Mex., 26-7, 31-2. The products of the maritime and frontier custom-houses in 11 years ending June 30, 1837, were $72,819,980, or an average of $6,619,998. The expenses of collecting, including salaries, did not exceed 31/2 per cent. Mex., Mem. Hacienda (1822, Feb. 28; 1823, June 2, Sept. 3, Nov. 12; 1824, none; 1825, Jan. 1, 4; 1826, Jan. 13, 16; 1827, Jan. 1; 1828, Jan. 29; 1829, Jan. 2; 1830, Apr. 1; 1831, Jan, 22; 1832, Jan. 2; 1833, May 15; 1834, none printed; 1835, May 22; 1838, July 27 and 28, for the fiscal years 1835-6, and 1836–7). Willie, Noticia, Hac. Púb., tables C and D. The effect of the tariff of 1837 was felt in diminished revenue. The following figures represent net proceeds: July 1, 1837, to Dec. 31, 1938, $4,238,411, equivalent for a year to $2,838,941; 1839, $5,174,888; 1840, $7,115,849; 1811, $5,544,065; 1812, $4,900,667; 1843, $7,249,722. Mex., Mem. Hacienda (1839, July 25; 1840, July 14; 1941, July 28; 1844, Jan., for the fiscal years 1841, 1842, 1843).
37. The yield of the maritime and frontier custom-houses for import and ex. port duties, including also vessels' port charges, in those years was as follows: Total collected, at rates of 40, 30, 25, and 12 per centum, from Jan. I to Dec. 31, 1844, $6,933,991. During war with the U.S., no reports were made in 18 16 and 1847; the collection from Jan. 1, 1848, to June 30, 1819, gross, $5,412,113, net, $1,949,692. The total recovered in the five years from 1847 to June 30, 1852, $24,532,616; in the next three years, $25,039,502; in the first six months of 1856, gross, $3,641,745, which would make for a year about $7,283,490. Owing to civil war, there were no further reports to June 30, 1869. Mex., Mem. Hac., 1845, July 8, 1819; 1850, Feb. 12; 1851, July 18; 1852, Feb. 23; 1857, Feb. 10, annexes 176, 177; 1870, Sept. 16.
38. This additional duty was suspended for 10 years by decree of April 8, 1961.
39. The federal government sanctioned the decree Sept. 30th following, and enlarged the belt later, not without great opposition. In June 17, 1878, a regulation was issued, ratifying all that had been decreed before relative to the zona libre, and finally by decree of Jan. 24, 1885, establishing new tariff regulations, the zona libre was extended all along the frontier from Matamoros to Tijuana in Lower Cal. Manero, Not. Com., Mex., 31-7, 47-8; Mex., Mem. Hac., 1868, app. last doc., 1-9; Diario Debates, 6th Cong., iv. 14-15; U. S. H. Misc., Cong. 40, Sess. 3, doc. 16; U. S. Sen. Misc., Cong. 41, Sess. 2, doc. 19; U. S. Com. Rept, 701, pp. xix.-xxi., and app. vol. iii., Cong. 45, Sess. 2; Mex., Diario Ofic., Jan. 31, 1885.
40. Information on the above subject will be found in Gaz. Imp., i. 157-8; Guia de Hac., iii. 1-2; Gac. Gob. Mex., April 18, 1827; Dublan and Lozano, Leg. Mex., ii. 30, 75; v. 82; vi. 416; ix. 175-6; Archivo Mex., Col. Ley., i. 631-2; Arrillaga, Recop., May 1849 to Apr. 1850, 69; Mex., Col. Ley., 1853, Apr.-Aug. 1853, 66-7, 93-4; Mex., Legis. Mej., Apr.-July 1853, 236; Aug-Dec. 1853, 323-4; Jan.-May 1854, 109-11; El Correo Nac., Nov. 11, 1847; El Razonador, Nov. 20, 1847; Diario de Avisos, July 11, 1859; Mex., Col. Ley., Dec. y Órd., Sept.-Dec. 1853. 195-6; Arco Iris, Oct. 1847; Sin., Bol. Ofic., May 16, 1872, 217; Tovar, Hist. Parl., iii 1004-6; iv. 38, 230, 272, 705; Diario Debates, 10th Cong., iii. 889.
41. A law of July 1, 1876, declared what were the imposts on foreign commerce for the 52d fiscal year; namely, import duties, as per tariff of Jan. 1, 1872; transit duty, according to that tariff, and the law of Dec. 25, 1872; tonnage and light dues; export duty on gold and silver, orchilla from Lower California, lumber, and cabinet woods. The duties collected in the years 1867-77, both inclusive, amounted to $96,504,229. Mex., Mem. Hac., Sept. 16, 1870, 714, 757, 816, 983-9.
42. Among the articles set down in the free list may be mentioned telegraph wire, ploughs and their shares, cars and trucks for railroads, steel and iron rails, steam-engines and locomotives, rubber belting, coal, quicksilver, bullion, fire-clay, complete houses of wood or iron, anchors and their chains, masts and yards, and unset precious stones, including pearls. Agricultural, mining, and industrial implements and machinery are taxed at 1/2 cent per kilogram. The tariff is so simplified that there are several hundred distinct classifications less than in the one which preceded it. Copy of it in Mex., Diario Ofic, Feb. 3 to 10, 1885. The custom-house receipts during the four fiscal years from July 1, 1880, to June 30, 1884, were respectively $14,462,213, $18,030,436, $19,119,726, and $17,423,529. Mex., Mem. Hac, 1884, p. xlix.
43. The highway from Vera Cruz to Mexico cost $3,000,000. From that port it runs northward till it nearly reaches Cerro Gordo, then it turns inland through the gorge of Jalapa, elevation 4,264 feet; thence it is extended over the mountain of Perote, 10,000 feet high, to the table-land of Mexico. Eight principal lines traversed the country in the middle of the century as the great commercial highways: 1, that from Mexico to Vera Cruz; 2, from Mexico to Tuxpam; 3, from Mexico to Cuernavaca; 4, from Mexico to Monte Alto; 5, from Mexico to San Blas, via Querétaro and Guadalajara; 6, from Puebla to Tehuantepec, through Oajaca; 7, from Querétaro to Tampico; and S, from Querétaro to Chihuahua. Silíceo, Mem. Foment. Col. Ind., L. ii. 45-64.
44. In 1827 a board of public highways was established for the purpose of improving roads. Giua de Hac. Rep. Mex., vi. 77-81. In 1861 an order was issued by the government authorizing the different states to provide for the safety of travellers by employing the national guards for their protection. Archivo Mex., Col. Ley., v. 616-18. In 1865, Maximilian, by decree of August 19th, established a superior council on roads and bridges. Col. Leyes Imperio, v. 79-81. Stage lines were established between all the most important towns. The first appears to have commenced running in 1827 between Vera Cruz and the capital, the fare being $70. These coaches were frequently assailed and stoned by the lower classes, from whom the establishment of these lines took away the business of the transportation of passengers. In 1860 stages ran daily from the capital to the port via Puebla and Orizaba, and also to Toluca. A line ran three times a week to Tepic, through Querétaro, Guanajuato, and Guadlalajara, fare $109. These lines transported annually 30,000 passengers, at an average of $20 each. Hernandez, Estadíst. Mej., 39-40. In 1883 lines were running from the capital to Morelia, Guadalajara, Ameca, and San L. Potosí, besides others between different towns. Cor. Fed. Ver., 8 Mar., 1828, 4; Rivera, Hist. Jalapa, iii. 137; Wampüus, Jer. und C. Amer., 92-3; La Nacion, Aug. 20, 1956, 1; El Estendarte Nac., 8 Junio, 1857, 4; Bol. Ofic. Estad. Sin., 27 de Abril, 1873, 62.
45. Under this system, however, fairs became more numerous, and the privilege of holding them was granted to different towns all over the country. In the single year of 1855, five were established by decree, namely, those of Cholula in Puebla, of Santiago and Natividad in Tabasco, Mex., Legisl. Mej., 1855, 67-8, 212–13; and of Tulancingo and Ixtlahuaca in the federal district of Mexico. Mex., Col. de Ley. Ord., Ener.-Agost. 1855, viii. 17-18. The retail business transacted at some of these fairs was enormous, but especial mention must be made of that held at San Juan de los Lagos during the first 15 days of Dec., all goods being made free of state duties during the first 12 days. The retail trade carried on during this fair exceeded that at the capital. Soc. Mex. Geog., ii. 89-90.
46. Bustamante, Voz de la Patria, ii. no. 7, 7; Cuba, Dos Años en Mex., 89-91.
47. Mex., Mem. Sec. Estad., 51-2; Rivera, Hist. Jalapa, ii. 337. It had incurred a debt of $2,124,252, in constructing the road from Vera Cruz to Perote. This sum was paid by the dues derived from avería and peaje. Pap. Var., 186, no. 3, 17-20, 33-8.
48. The offices of the president and the older colleague were annual. Six substitute judges were also annually elected. Dublan and Lozano, Ley. Mex., iv. 53-4.
49. Copy of the bankruptcy law of 1833 is supplied in Id., vi. 338-53.
50. Members of the mercantile tribunals were not allowed to practise law. Mex., Col. Ley. . .Ord., Mayo-Dic., 1854, vii. 27-8.
51. Brokers received their licenses originally from the tribunal del consulado. Gaz., Gob. Mex., 1816, vii. 884. In 1842 the junta do fomento del comercio extended the licenses, and in 1854 the ministerio de fomento. Mex. Reg. Corredores, 5; Mex. Corredores, Reg. y Aran., 3; Pap. Var., 50, nos. 10 and 11.
52. The charter was annulled in Dec. 1841. In 1857 another was founded?, with a franchise for 10 years, extended to Liger de Libessart & Co., capital $5,000,000, and a third in 1882, with a capital of $8,000,000. Mex., Mem. Hac., 1870, 167-8; Mex., Col. Ley. Dec., 1841, 148–52; Silíceo, Men. Foment. Col. Ind., 100-1, L. vi., 41-8; Dublan and Lozano, Leg. Mex., viii. 502-11. The same year the Mercantile Bank was incorporated, and in 1884 the two banks were merged in one, with a capital of $20,000,000. Mex. Financier, Apr. 5, May 31, 1984; Zaremba, Merchants, 27.
53. The bank of London, Mexico, and South America, incorporated in 1884, capital £2,000,000; the Franco-Egyptian in 1881, capital 98,000,000; the Banco Hipotecario, or mortgage bank, in 1882, capital : $5,060,000; and the International Loan and Trust Company the same year. Mex., Diario Ofic., Nov. 30, Dec. 5, 1831; June 11 and 19, 1883; Banco Mac. Mex., Ley de Conces., 1881, p. 33; Banco Hipot, Mex., 1882, p. 64.
54. The charges were very high: 1 real for a letter under ounce for a distance of from one to five leagues, and 4 reales for a letter weighing one ounce. In 1856 these rates were reduced to one half. Dublan and Lozano, Leg. Mex., iv. 297-301, viii. 125.
55. The convention was ratified Feb. 17, 1862. Seven cents was charged on letters not exceeding half an ounce, and an additional 7 cents on every additional ounce or fraction of it. Newspapers were charged l cent. Id., ix. 452-5.
56. Ten cents is charged on letters weighing 15 grains, or a fraction of that weight, for delivery within the republic. Postal-cards 5 cents, and 2 cents within city limits. Newspapers and periodicals, 4 cents for each 450 grains. Mex., Codigo Postal, 1884, 61.
57. The following are the annual amounts yielded to the revenue from this service for the 10 years ending June 30, 1884: 349.820, $455,473, $441,329, $390,384, 3679,392, $702,080, $611,719, $720,450, $823,887,$460,393. Mex., Mem. Hac., 1984, p. xlviii.-xlix.
58. The 1-cent coin weighed 2 grams, the 2-cent one 3 grams, and the 5-cent ones 5 grams each; consequently five l-cent pieces weighed as much as two 5-cent pieces, and two 2-cent pieces with two l-cent pieces weighed the same. As it was impossible to count the large sums paid into the custom-houses, the coin was received by weight, and considerable loss was incurred, inasmuch as 5 cents in one form and 6 cents in another weighed the same as 10 cents in 5-cent pieces. Mex., Mem. Hac., 1881, p. lxxvii.
59. Mex., Mem. Fomento, 1882, i. 443-6; Mex., Diario Ofic., Dec. 15, 1883; Mex. Financier, June 13, 1885, 165.
60. Mex., Observ. Caminos de Hierro, New York, 1833; El Indicador, ii. 119–34.
61. Proyecto del Primer Camino de Hierro, Mex., 1837, pp. 112, in Diorama.
62. Payno, Convencion Mex., 34–48; Bustamante, Diario Mex., MS., xlv. 75; Pap. Var., 24, 2.
63. Eight miles cost $2,263,151. In May 1952, the department of public works took charge of the road, and to the end of June 1857 expended $700,859 more on it. Payno, Conven. Esp., 37-9.
64. During the period 1853 to 1857 inclusive, no less than twelve railroad concessions were granted by the government, all of which, except four, fell to the ground. Silíceo, Dem. Fomento, 19-25. Escandon paid for the portion of the line already laid, $750,000 in specie and government paper. Escandon, Breve Expos.; and Id., Segunda Expos.
65. In 1864 Escandon transferred his concessions to an English company, styled the Imperial Mexican Railway Company, and the transfer was approvel by Maximilian on the 25th of Jan. 1835. Mex., Men. Hac. y Foment., 1858, doc. 2, pp. 18-22, 249-6); Cac., Nic., March 1865, 91; 8 April, 127.
66. On the downfall of Maximilian, the concession was declared forfeited. In Nov. 1867, however, the company's privileges were restored, and the work resumed. Consult Mex., Código Reforma, 345-60; Mex., Mem. Hac., 1970, 616; Bullock's Across Mex. in 1864, 19-20; Ferrocarril, Conces., Mexico, 1868; Ferrocarril di Mex. á Pueb., no. i, 18-48; Gac., Nic., 4 Jan., 1868, 5; Ferrocarril, Breve Expos., Mexico, 1868; and El Derecho, v. 186-8.
67. Riva Palicio, Hist. Adm. Lerdo, 102-3; Columbia, Diar. Ofic., 7 Abril, 1877, 4567-9; Ober, Mex., 514. The construction of this line cost $40,000,000. It is 264 miles in length, and includes an ascent of 8,333 feet above the gulf of Mexico. Great engineering skill was required to build it.
68. Laws were enacted inflicting penalties and other punishments upon such offenders. Mex., Col. Ley. D. C., ii, 271, 863–7; Diario de Avis., 15 Jan., 1858, 2.
69. In a pamphlet entitled Los Ferrocarriles Mexicanos, published in 1881, by a prominent Mexican, a list is supplied of 42 concessions granted during the period from Aug. 14, 1877, to Feb. 3, 1881.
70. A concession had been granted Dec. 5, 1874, to Camacho, Mendizábal, & Co., to build a line from the capital to Leon. It was annulled Dec. 26, 1976, and was extended Apr. 3, 1580, to the Mexican Central R. R. Co., organized in Boston, Mass. Mex., Diario Ofic., Apr. 13, May 7, 1880.
71. The concession was granted Sept. 8, 1880, and the government subsidy was $9,500 per kilometre. Mex., Recop. Leyes, xxxiii. 472-505.
72. Besides the subvention, the Mexican government granted the company the right to import materials for construction, repairs, and operation, for 15 years, free of duty. The line is of the standard gauge, 1.435 metres in width. Capital stock, $32,000 per mile, divided into shares at the par value of $100 each.
73. Anuario de Mex., 1882; Busto, Estad. Rep. Mex., ii., 5th pt, 442-6. The above statement does not include towns containing less than 8,000 inhabitants.
74. Mex., Diario Ofic., March 10, 29, 1884; Jal., Periód. Ofic., March 16, 1884.
75. In 1872 James Sullivan, the agent of the company in Mexico, had obtained a charter for this line, with concessions. Rivera, Mex. Pint. Cambas., i. 293-8. Owing to the panic of the following year, his project temporarily failed. On the 13th of Sept., 1880, a second concession was granted the company, their agents, Palmer and Sullivan, having deposited $300,000 in the bank of the Monte de Piedad. Busto, Estrad. Rep. Mex., ii. 460; Diario Ofic., ii., Set. 1880; Id., 29 Oct., 1880. The subsidy granted to this line was $11,270 per mile completely.
76. See report of government engineers, in Diario Ofic., 16 Agost., 1883.
77. The concession was granted to Frisbie and Huntington, as representatives of the International Construction Company, in June 1881, but no subvention was allowed.
78. The company, represented by Camacho and Fergusson, is a Boston one, and obtained their charter Sept. 14, 1880. The government subsidy was $7,000 per kilometre.
79. Concession granted to J. B. Frisbie without subvention. It is to be of the standard gauge.
80. Concession granted to De Prida and Pombo on the 23d of May, 1881, with a subvention of $5,000 per kilometre.
81. El Monitor Repub., June 2, 1885; Diaz, Misc., no. 68; Mex. Financier, June 6, 1883.
82. For further information relative to this project, see Mex., Mem. Foment., 1884, iii. 581-616.
83. Eads proposed to transport vessels of 4,005 tons burden across the Tehuantepec isthmus on 12 lines of rails, four engines running at the same time. In order to avoid straining, changes of direction to be effected by means of turn-tables instead of by curves.
84. Mex., Legisl. Mej. 1849, 92-3; Arrillaga, Recop., May 1849 á Abr. 1850, 5-6.
85. In 1881 the govt possessed 10,365 kilometres of wires; in 1884, 31,100 kilometres. Various laws were passed imposing penalties and punishments upon those who destroyed or disturbed the wires. Dublan and Lozano, Leg. Mex., x. 10, 12-13; Mex. Col. Ley. D. C., 63-7, iii. 267-8; Archivo, Mex. Col. Ley., vi. 18-19; Dublan and Lozano, Leg. Mex., ix. 188-9; Mex., Diar. Ofic., March 28, 1871, 3. For the earlier history of the telegraph in Mexico, consult Garcia Cubas, Escritos Liversos, 394 405; Orozco y Berra, Mem. Ciud. Mex., 222-6; El Cronista, S. F., May 17, 1884.
86. Dublan and Lozano, Leg. Mex., xi. 449-51, 587; Mex., Diar. Ofic., Nov. 1, 1871, 1; Diario Debates, 6th Cong., i. 292, 302-7; ii. 237, 246, 236.
87. The street-cars are managed after a method of their own. Instead of starting one every five minutes, they run four every twenty minutes, more or less, according to the traffic, thus despatching trains instead of single cars.