The report addressed to the minister by the commission, which accompanied
the project of tariff explanatory of the general features of the reforms
proposed, has been published, and I transmit a translation of the same
herewith.
From this it appears that in the new project a general reduction of duty
of ten per cent, on dry goods, groceries, and common hardware is
proposed, and an increase of the same amount in the duty on fine
hardware.
The system of specific duties has been adopted by the commission. The
free list, it is stated, has been augmented, and the quotas on articles
of first necessity diminished. The commission recommends the abolition
of prohibitions and the free exportation of all products, including
ores, but retaining, for a time, an export duty on silver and gold,
coined and in bars. To facilitate the exportation of the latter, assay
offices at four of the principal ports are recommended.
The commission recommend the equal application of the tariff over all the
republic, and therefore the termination of any special privileges that
may have been given to certain localities.
Under the exceptional character of the case, however, in the so-called
free zone of Tamaulipas, the commission state that “the establishment
there of a port of deposit might be recommended, although the measure
would have in its realization very grave inconveniences.”
The majority of the commission, it is stated, are not in favor of the
establishment of ports of deposit.
A period of sixty days for the payment of duties is recommended. It is
also proposed that three-fourths of the amount of duties be paid in
drafts to the order of the minister of treasury.
The commission states that it has believed it desirable to unify the
duties, and recommends that interior custom-houses be suppressed. It
also states, that, with reference to the form of the tariff, the
metrical-decimal system has been adopted in all the calculations, the
number of specifications of merchandise considerably reduced, a more
regular and
[Page 618]
compendious
nomenclature adopted, and that the administrative proceedings have been
simplified.
The use of stamps in place of sealed paper is also recommended.
As this latter measure has already been proposed in congress for general
adoption, it is probable this reform will be accomplished.
The first great object necessary to be attained in the reform of the
Mexican tariff is its simplification and the removal of restrictions.
The desirable adjustment of the rate of duties will then be less
difficult.
From what I learn from the government, it appears probable that after
some examination of the project of the new tariff by congress, a general
authorization will be given to the executive for its conclusion.
The present session of congress, it is believed, will be extended for a
period of thirty days from the date fixed for its ordinary adjournment,
which is the 16th proximo; but this is as long an extension as is
permitted by the constitution.
Should such authorization be given, the tariff may be completed in time
to go into force, perhaps, at the commencement of their coming fiscal
year, viz., on the 1st of July next, which is earlier than was indicated
in the notice I communicated to the department with dispatch No. 197, of
the 2d of October.
[From the Siglo XIX, Mexico,
November 17, 1868.—Translation.]
TARIFF.
TARIFF COMMISSION.
To the Citizen Minister of the Treasury and Public
Credit, present:
The undersigned commissioners have the honor to inclose to your
department the project of tariff, the formation of which the citizen
President of the republic was pleased to intrust to them, expressing
at the same time their regret that it has not been possible to remit
this work before, on account of the difficulties with which they
have had to contend in completing it.
The commission does not believe that it has entirely met the desires
of the President, because for this it would be necessary to accord
to it a perfect knowledge of all the different branches of industry,
from which and from a knowledge of our fiscal legislation and of our
international commerce to adjust the reform of a law as delicate as
important; but, however difficult and laborious may have been the
discharge of a trust to those who judge themselves insufficient for
it, the zeal which is brought to the task may make amends.
A detailed report of the reforms contained in the project we present
may be considered unnecessary, as neither your department nor the
public would attempt to estimate the greater or less difference in
the quotas assigned to the thousand articles embraced in our foreign
commerce; but we believe it our duty to indicate generally the
principal points to which these reforms relate, taking as their
basis the development of our new institutions, as also the progress
of our commerce in the twelve years that have elapsed, since the
publication of the ordinance now in force.
We have first to indicate that the commission does not accept
entirely the idea that a reduction of the rates of duties is
indispensable for the progress of a country, nor that this can be
done to any great extent in those of the republic, when throughout
the whole epoch of our political existence, foreign commerce has
formed sixty-six per cent, of all the sources of revenue of the
federal treasury.
In some countries the maritime revenues do not occupy an important
place, but this difference, so remarkable, rests in a truth which
cannot be placed in doubt, which is, that territorial wealth, in
combination with the love of labor, begets an industry which being
sufficient for domestic necessities overpasses the frontier to seek
in its turn the tribute of foreign capital. Then, when production is
superior, or at least equal to consumption,
[Page 619]
the exchange is perfect, and the people and
governments can lend to each other mutual aid without its being
burdensome on the one hand, or on the other difficult to exact.
Unfortunately this advantage is very far from being realized in
Mexico, not because there are lacking elements of life, but on
account of causes independent of the gifts with which nature has
been so prodigal to this soil, which have rendered it impossible for
it to place itself at the altitude which belongs to it.
Notwithstanding this, neither has the commission been prejudiced in
favor of the idea that duties have a purely fiscal object, because
it only admits the principle with reference to burdens upon foreign
effects, that these shall be laid solely so far as may be strictly
necessary; but even if it had had the intention that we should
conform ourselves to the practice of other nations, no fixed
principle could be adopted, for none exists, as is seen immediately
from an examination of contemporary statistics, that labyrinth of
principles and of numbers that points out only the imperative duty
of attending to the public necessities without preoccupying
ourselves with doctrines whose practice is not observed even by
those who have undertaken to proclaim them. A single example will be
sufficient to prove this. Between the wealth of England and that of
Spain, a comparison is not possible, and notwithstanding the first
receives from its maritime revenues thirty-three per cent of the
total estimates of the crown, while the second only receives ten per
cent. With these observations the commission will proceed to give an
idea of the general result of their labors. As a principal point
they proposed to equalize the custom-house duties in the various
branches of which foreign traffic is composed. For that purpose with
reference to articles commonly known under the denomination of dry
goods, groceries, and ordinary hardware, it has made an average
deduction up to ten per cent, upon the existing tariff, and an
increase of the same amount upon fine hardware.
At first view it might be believed that the total receipts would be
reduced thereby, as the importation of the former is greater than of
the latter; but having abolished the system of collection upon the
value of the invoice, which in medicinal drugs, chemical products
and other articles gives rise to a punishable abuse, doing the same
with the system of appraisement, and placing upon all these articles
fixed quotas, comprehending in these textile fabrics containing
different materials, and those composed of different materials in
other articles, it is evident that the federal treasury will receive
all its duties in avoiding the possibility that now exists of the
juice of an article being placed at ninety per cent, below its cost,
or of eluding the just payment because a texture of wool has a
thousandth part of cotton. From this it results that while private
interests will not be burdened, the maritime revenues should have an
increase of at least ten per cent. And this increase, which, without
burdening legitimate commerce, is not doubtful for the federal
treasury, will be certain for the municipalities in whose favor the
commission recommends the payment of twenty cents for every one
hundred kilograms of gross weight upon imported merchandise, that
now collected under the ordinance in force being only twelve and a
half cents for every two hundred Spanish pounds, which is with
little difference the same proportion; and for rendering effective
this benefit to the municipalities, which is repugnant to no one,
they propose in the mode of payment an efficacious means by which
each treasury will receive what belongs to it, because from the
contrary we might see with regret the federal treasury absorb in
periods of great distress even those funds which are dedicated by
their institution to objects of benevolence, public instruction, and
the material necessities of the various populations.
In so far as possible we have taken a step forward in conformity with
the ideas of liberty which dominate throughout the republic,
augmenting the free list by a number of articles and diminishing
very sensibly the quotas on those of prime necessity, and upon
instruments and ingredients which are necessary for the national
industry.
For the first we have had the design of facilitating by this means
the increase of our internal traffic, furnishing at lower prices all
that it may be necessary to acquire from foreign commerce, and for
the second that of rendering to the agricultural and mining
interests an immense benefit, by placing the poorer classes in a
position to labor with less inconvenience.
The commission has believed it equitable, necessary, and economical
to abolish the pernicious system of prohibitions; for which reason,
and in deference to a constitutional precept, it recommends that
there should be none upon importations, combining with this idea
that of the free exportation of all of our products, giving in this
manner the last blow to the remains of the colonial system, which
has been so untoward for the public wealth through the monopolizing
of our natural products; and if in this part the desires of the
undersigned and those especially manifested by other nations are not
fully met, it will serve as an excuse for the small exception that
is made of silver and gold, coined and in bars—the consideration
that the treasury would be suddenly deprived of a resource which for
the present there is no means of compensating, at the same time that
the debt would be augmented, all of the mints not being under the
immediate control of the government.
Later this measure may be recommended in accordance with the
interests of our
[Page 620]
industrial classes, there being sufficient for the present: the
indubitable benefit which will be afforded to them by the free
exportation of ores, the value of which is now in a great part
nominal, either from natural difficulties in the situation of the
veins, or because our system of reduction is too expensive, or not
adapted to the chemical character of many ores. But in order that
the article to which we have referred at the beginning of this
paragraph may have its due effect, the commission believes that the
establishment of assay offices, as departments of the maritime
custom-houses of the four ports therein mentioned, is desirable. The
increase in the annual appropriations will be compensated by the
expenses of assay which the introductors will have to pay.
From the removal of prohibitions there follows, as a necessary
consequence, the abolition of certain privileges accorded by the
ordinance of 1856 and by subsequent laws in favor of various ports.
These privileges cannot subsist, because they are pernicious and
unjust, inadmissible and condemned in the fiscal legislation of all
the world, as also expressly and absolutely condemned in our
fundamental charter. The first, because in making concessions to one
locality for a given motive there is no reason for refusing the same
to another, if alleging the same or other grounds; and in such case,
by privilege on privilege, the federal revenues would be very
seriously diminished.
The second, because in the benefits of a law there should be included
all the inhabitants of the republic, whatever may be the place of
their residence, and the industry or labor to which they are
ordinarily dedicated.
The third, because the basis upon which a maritime tariff should rest
is uniformity, favoring by this means, justly and equitably, the
diverse and complicated operations of foreign commerce, and avoiding
also the inequality in prices which would occur from the authorized
monopoly, in the interior of the country, of the importers who had
obtained such advantages.
And finally, under article 28 of our constitution no one can sustain
that, from geographical considerations, or from the configuration of
certain localities, the sacrifice of a principle should be
obligatory to the denial of other rights and other interests.
Above all, by fixing the view for an instant upon the map of the
republic, it will be seen immediately how marked is the difference
which should equitably be made between the merchants of the two
coasts; those of the Gulf having their markets in direct
communication, while those of the Pacific have to make the round of
all the continent.
Even in this manner the idea is not exact, for the climate, the
configuration of each bay, the direction of the currents, the
customs of each people, their local governments, and a thousand
other causes, influence directly in the progress or depression of
their commerce.
This admitted, it places your department under the impossibility of
conceding exemptions and privileges to specified ports.
Notwithstanding, under the exceptional character of the case in the
so-called free zone of Tamaulipas, the establishment there of a port
of deposit might be recommended, although the measure would have in
its realization very grave inconveniences.
Another idea the commission believes it should recommend, because it
is required for the popular administration of justice. Until now
there has passed unperceived all of the grave, inconvenient, and
immoral that there is in the authorization that the fiscal agents
should be participators in the pecuniary penalties imposed upon
contrabandists; and if this principle is universally rejected by
modern legislation, in so far as relates to trials, whose conduct
pertains to independent tribunals, with how much more reason should
it be repugnant when these trials are commenced, and sentence is
rendered by the individuals to whom the law assigns a part of the
fine. The commission does not reflect upon the integrity nor the
very respectable number of persons who fill these posts, by
supposing that the inducement thus presented is the only stimulant
for compliance with their duty; but the fact is, citizen minister,
that the judge should not have before himself even the shadow of
what might affect the rectitude of his acts. If, notwithstanding
what has been stated, your department has a different opinion, the
undersigned believe that the articles relative thereto should remain
in the project without any alteration, with the reservation of
recommending an increase of salary to the employers, to whom, by the
adoption of this principle, prejudice would result.
Having thus set forth the principal points of our work, we will
descend to other particulars. The commission has believed it
desirable to unify the duties, as well because it is in conflict
with our system to have special funds, as because this measure is
the most facile for the relief of the material labor in the maritime
custom-houses.
For the same reason, there being now no object whatever for the
subsistence in the interior of the republic of collecting offices
for federal revenues, as all of the duties are to be paid in the
maritime custom-houses, it being a fact that, in compliance with a
constitutional precept, the interior custom-houses have already been
suppressed in various States, the commission recommends that all
documents whose issuance was required under the old system be
reduced to a single one, which shall consist of a certificate that
such merchandise has been legally imported, the circulation of
nationalized effects in the interior being as a consequence
free.
[Page 621]
Notwithstanding this and of the conviction of the undersigned, that
without very grave inconveniences for commerce, and without a new
and considerable burden for the treasury, no system of vigilance can
be established which will fully protect the public interests, the
commission judges that the most practicable means, the most liberal
and the most efficacious, that can be put in practice, is no other
than that of guarding our coasts, which object can be very well
attained by establishing a maritime guard in small
steam-vessels.
In the commission, by one of its members, the establishment of ports
of deposit was proposed, but the idea was not accepted by the
majority, it being adopted in place thereof that the payment of
duties should be made at an extension of time relatively small,
compared with their ordinary and total amount. The commission does
not believe that this can be prejudicial to the government, because
as a final result for it this term will be but for once, as the
first period of sixty days having been passed, the importations will
then follow in continuous payments, and the treasury will receive
its funds without any interruption; and precisely on account of the
idea that the commission has had of protecting these receipts from
the abuses which have been committed by various military authorities
in consort with the collectors of the custom-houses, it proposes
that three-fourths part of the duties shall be paid in drafts to the
order of your department, in order that that provision shall serve
as a legal excuse for all who take part in this act.
It is possible that the committee has neglected to refer to some
other points of importance in the project, but it reserves itself to
do so in a more detailed manner, when your department shall believe
it necessary to call for the same.
With reference to the form and mode of the tariff, the metrical
decimal system has been adopted in all the calculations; the number
of specifications of merchandise has been considerably reduced; a
more regular and compendious nomenclature has been given to the body
of the tariff; the administrative proceedings have been simplified,
and the interests of the treasury have been assured in the best
possible manner, without losing sight on this account of the
principle of equity to which those who contribute to the public
funds are entitled.
The national marine preserves in the new project the place that
belongs to it, without this preference conflicting with the
principle of liberty which has been its basis.
Finally, in order to facilitate the dispatch of foreign merchandise
the undersigned propose that in place of the sealed paper that is
now in circulation, the use of stamps be introduced for maritime
transactions, the value of which to be as specified in the articles
relating thereto.
By this means, which is the most economical for the federal treasury,
a step will be taken far in advance towards the attainment at a
later moment of their entire adoption in all that relates to
official acts.
In fine, citizen minister, the projet that we have the honor to
present to you embraces all the reforms that are now recognized as
desirable in the best revenue systems; in so far as our inability
has permitted, we have overlooked nothing; and if our work is not
perfect, it will be at least preparatory to another which may be
carried into effect by persons who may have the advantage over us in
information, but not in desire to serve the interests of the
republic. Notwithstanding this, we have the conviction that the
projet will have its detractors, because it is difficult, if not
impossible, to satisfy all the diverse interests created, either by
custom or by the law, although in the one case they may be
pernicious, and in the other undesirable.
It would be unjust not to make mention of the names of Messrs.
Theodore Rapp, Luis de Vivanco, Alfred Wisel, Augustin Holting, and
Carlos Nieth, who with their knowledge have contributed
efficaciously and spontaneously to the discharge of our trust. We
belieye, therefore, that we should express in this note the
testimony of our gratitude and recognition, anticipating that which
should be given by your department.
We protest to you with this occasion the assurances of our respect
and esteem.
Independence and liberty!
Mexico, November 11, 1868.
JULIO F. MHINK.
