New-York tribune., 1870-06-01
TIE FREE ZONE.

foreign goods imported into the Unltcd StateS
to he conveyed in bond into Mexico. On the
certificate of our Consul mt the Mexican port
where these goods we're received, or in case
there was no Consul (and generally there was
noue) then of two merchants of the place, the
bond was cancelled, and the importer conse-
duenty had nothing to pay to the Government
except some trifling fees and warehouse charges.
Under the operation of this system Galveston,
Indianoia, Corpus Christi, and other South
Western ports of the United States built up "a
prosperous trade with Mexico, and the towns
on our side of the Rio Grande, where the
goods were sent across, increased rapidly IN
wealth and population. The Mexican towns
on the other bank of the river
were in condition OF decay, when
the State of Tamaulipas i'll 1857 created the
iona Libre, or Free Belt for the purpose
of restoring their prosperity. This was to be
done by the establishment of line OF SNUG
Cling stations from the mouth OF the Rlo
Grande as far up as the jurisdiction of the
State extended. OF course the purpose was
vailed. 1t was enacted that foreign goods de-
signed for consumption within this zone, or
for the trade of it's towns among each 0ther,
should be admitted free of duty. If they were
afterward sent into the interior. they should
become liable to the established tariff dues.
Lest the Mexicans should overlook the oppor-
tunities afforded by this arrangement to out
wit the United States, the Governor of Tamau-
lipas (who had probably read the history of
Mr.. Wrinkles dueD begged his fellow
citizens not to convert this privilege
into shameful smuggling traffic" and we
must do his fellow citizens the justice to say
that they Immediately took the hint. Every
man in the Free Zone became contraban-
disa. Cheating the customs was recognized
as an honorable mercantile transaction. Mata-
moras, CamargO, Mier, Guerrero, Laredo, and
other favored Mexican towns waxed prosper
ous. and the trade of the American side OF the
river was almost ruined How goods were
smuggled from the FREQ Zone into the interior
of Mexico is no affair of ours; with Mexican
officials it was of course easy enough; but the
principal business of the belt was fraudulently
Transporting the goods back into the United
States. The river is only $50 yards wide. and
is lined with a dense chapparal, cut here and
and there by cattle-paths. There are few
roads, and the habitations are far
apart. Smugglers accordingly had every
opportunity they could desire. ComDe-
tent witnesses examined by the Joint Select
Committee on Retrenchment in Washington
estimated that three-fourths of the goods i'm
ported in bond into the Free Zone were SNUG
gled back across the river, and a great deal OF
the merchandise Ostcnsiby sent into Mexico
never crossed the river at all. A cargo OF
foreign manufactured goods, for instance, ia
received at Galveston. The importer, instead
of paying the duties, ships it in bond to Mata-
moras and enters it there free of duty, on
the pretense that it is for consumption within
the limits of the Free Zone. The certificate
of the Consul is presented and the bond is
cancelled The importer then breaks up the
packages, and Mexican firm contracts
to smuggle the goods back into the
United States, an operation comparatively
easy, because the country affords unrlyaled
opportunities for cOncealment and the Mexi-
can Government never attempts to interfere.
Or let us suppose an invoice of bonded goods
is to be sent overland from an American to
Mexican town: the teams disappear in the
chapparal, the packages are changed, and be-
fore reaching the river the wagons are turned
about and driven off in another direction. In
a community of smugglers it is easy enough
to find two Mexican merchants who will sign
the certificate required for the canceling of the
bond. The frauds committed in these two
ways upon the revenue of the United States
are estimated at from $2,000,000 to $6,000,000
per annum. OF the merchandise imported
directly from Europe into the Free Zone and
thence smuggled into Texas it is impossible to
guess the amount.
1t is apparent that this evil can only be cured
by the Joint action of Mexico and the United
States The bill introduced into the Senate at
the suggestion of the Secretary of the Treasury
abOlishes the privilege of transporting goods
into Mexico in bond, and so cuts off portion,
and probably the principal portion, of the con-
traband traffic; but so long as the Free Zone
holds out inducements to Mexican importers to
store their goods in warehouses until they find
a convenient opportunity of getting them across
the border, we need not expect a complete re-
formation. Foreign goods will be brought di-
rectly to Matamoras, and the Mexican authori-
ties will ask no incOnvenient questions about
their ultimate destination. Anything like joint
action by the two governments we almost de-
spar of obtaining. Our complaints have been
laid before President Juarez he has admitted
their iustness, and he gave us reason to
hope that the decree establishing the Free
Zone would be abrogated. Instead of that it
has been extended to include the States of
Nuevo Leon and COahuila. The action of the
Mexican Government has in fact been not
merely selfish but studiousy unfriendly and
ungrateful. Juarez hestated at first to sane
ton decree by which Tamaulipas committed
so grave an injury upon friendly neighbOr !;
but in July, 1861, when Texas was in posses
sion of the COnfederates, to whom the Free
Tome would he an immense advantape no oovo