at the same time it diminished its small resources by reductions in the import duties, excise, and other imposts in order to make popular the independence. A new tariff was formed reducing all import duties to the single one of 25 per centum ad valorem, and the alcabala to 8 per centum.[1] The tax on pulque was lowered from $3.1212 the mule-load to 412 reales; so that the proceeds at the capital, which in 1810 had amounted to $283,336, only reached $87,591 in 1822. The productiveness of the tobacco monopoly was grievously affected by heavy debts owed to the growers of the plant, who, when funds were wanting wherewith to pay them, sold their tobacco to contraband dealers and immensely lessened the government sales.[2] Commerce experienced a violent convulsion. Free-trade was opened to all nations; and as commercial relations with Spain were closed, and those with foreign countries were not yet established by treaties, trade was reduced to the lowest ebb, with corresponding loss to the treasury. Nor did it assume any importance until revived by the settlement of foreign merchants in the country. The possession of the fortress of Ulúa by the Spaniards was also an additional cause of decrease in revenue. Vessels which arrived at the port of Vera Cruz paid customs to the governor of the fort, and their cargoes were smuggled ashore, payment of the Mexican duties being evaded. All industries had fallen into decay, lamentably so that of mining. Rich mines had been abandoned, machinery and reduction works destroyed, and the funds employed an-
- ↑ The prohibitions were removed from nearly all articles of foreign importation. The tariff was formed on a liberal plan, but serious mistakes were made. One of the few prohibited articles was raw cotton, while cotton goods, woollen cloths and stuffs, ready-made clothing, sugar, and all kinds of eatables were allowed to be imported. Such regulations affected the industries of the country, especially the manufacture of cotton goods, which was temporarily ruined. A copy of the tariff is supplied by Dublan and Lozano, who have inserted it in their Leg. Mex., i. 507-87, on account of its historical interest as being the first Mexican tariff.
- ↑ In order to improve the condition of this branch of the revenue, Iturbide was authorized to raise a loan of $1,500,000, for which he applied to the cathedral chapters, with but little success. Decreto de 2 de Enero, 1822.
