The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1888-05-14
TRADING WITH MEXICO.
FREE INTERCOURSE WITH A PoR-
TON OF MEXICO.
How Protection Brought Ruin to the
Towns ofthe fredericksburg Which
Reciprocity Would Extend to the
Whole Country.

n
just issued gives the reply of the State de-
partment to request for the correspond
ence about that little understood and
much misunderstood matter, the iona
Libre, or free zone of Mexico. The CORE
spondence, and especially an interesting
historical summary of the subject by Mr..
Romero, the Mexican minister, gives
clear account OF the origin and purpose OF
this curious and exceptional regulation.
There was time before the war of the
rebellion when our tariff was very low and
the Mexican tariff very high. 1t will
amaze Messrs. Kelley, Mckinley and Reed
TO learn that this condition, so far from be-
ing advantageous to the Mexicans, who
were in the full enjoyment Of tariff as
high as ours is now, was found by them to
be extremely injurious. While the towns
OF Texas near the Mexican border grew
and prospered, the towns opposite, in
Mexico, lost wealth and population, and
then began movement Of Mexicans across
the border into Texas, to get away from
the blessings of their high tariff.
Mr.. Romero writes:
"While in Brownsville and other towns
on the left bank of the Rio Grande domes-
tic articles Of daily use, such as provisions,
clothing, etc., were sold at comparative
ly low price. In Mexican towns on the
right bank they cost twice rs much, and
even four times rs much, and foreign
goods also were much cheaper on the one
side than on the other side OF the river:
This difference OF circumstances neces-
sarily brought about one OF these two re-
sults-it either caused the inhabitants OF
Mexican towns TO emigrate TO those OF the
United States, in order to enjoy the adj
vantages which were to be had in that
country, or IL induced them TO purchase
the goods which they needed in the United
States, and then TO smuggle them over to
the Mexican SIDE"
In 1857 happened the Comoniort revo.
luton, and in 1858 the Governor OF the
State OF Tamauiipas issued degree, which
first establishes the free zone. The Ian
guage of this decree given by Mr.. Romero
shows the original purpose OF the free zone.
"Whereas, the towns on our northern
frontier are in a state OF actual decadcnce,
owing 10 the want OF laws TO protect their
| trade; and whereas. being situated in close
proximity TO q commercial nation, which
enjoys free trade, they need similar adj
yantagcs in order 10 avoid losing their
population, which is constantly emigrating
TO the neighboring country; now, there
fore, desiring TO arrest this serious evil by
means OF franchises; which have so long
been demanded by the frontier trade"
BY this decree, which was approved by
| the federal Congress in 1861, and which
| has since been extended so as to be in
| force along the whole border line, from the
| gulf TO the Pacific ocean, the inhabitants
| Of the border Mexican States within TWEEN
| " kilometcrs, or twelve miles, OF the
| border may import without paying duties,
though under stringent regulations, Ger.
] tain goods for their own consumption; and
! these goods arc 10 be stored in bonded
places and must pay regular duties ii they
are taken out and transported into the in
terror OF Mexico.
This in the limit and meaning OF the
free zone. II is strip OF Mexican terri
tory extending along the border from the
| gulf TO the Pacific ocean, and twelve miles
deep. The inhabitants OF this strip are
allowed 10 import free Of duty goods os-
! tensibly for their own consumption, but
practically also 10 be stored in bond with
| In the limits OF the free zone for possible
transit 10 the interior OF Moxico-in which
case the established Mexican duties must
be iirst paid.
Ii is asserted that under this arrange
ment smuggling Is encouraged, and not
only does Mexico lose a good deal OF rev.
cnue, but that there is systematic SNUG
Cling through the free zone into the
United states, TO the injury OF our rev.
enue.
Minister Romero does not deny this,
but he remarks that the loss 20 the Mexi-
can revenue Is in the nature OF things very
much greater than that Of the United
States, and he urges that
''If the free zone in Mexico has incon-
veniences for this country much less Sc
rious than those which IL has for Mexico,
IL has, in my judgment, one advantage
which has hitherto remained unnouccd.
That is that goods from the United States
may he imported into Mexican territory
FREQ OF duty, and be warehouscd In the
region OF the zone for an unlimited time. No
greater privileges 10 the commerce OF a ma
ton can be asked for. II these privileges,
which are confined TO n limited zone, were
extended 10 the whole country do not
think that the United States would con-
slider the free admission OF their produc-
tons into Mexico rs being prejudicial 10
their interests"
II In difficult 10 see, after all, anything
more in the free zone than the exemption
Of Mexico, Of part Of lis citizens from
the laws and burdens imposed upon all
the rest The inhabitants of the Mexican
border for space Of twelve miles from
the limo are by this free zone law priv.
legged class. While their fcllow-citizens
south Of them must pay high duties, they
have free trade with tho United States. II
Is not easy 10 see how the Mexican govern
ment justiies 10 lis own people this inc
| quality In the laws, which also causes 10 II
a serious and continuous loss OF revenue,
entirely aside from the loss II suffers, as
Mr.. Romero confcsses, through smuggling
operations.
How the free zone can seriously iniure
the revenue or the merchants OF the coun-
try is not easy 20 see. Our people have
the extraordinary privilege Of scnding their
goods duty free into part Of Mexico. Mr..
Romero rightly says that Il would DO n
very great gain 20 ms u We could send
them duty free all over Mexico, but even
the limited freedom II an advantage.
Across 10 long and thinly populated a
border line there will necessarily be much
smuggling, especially whom both countries
have high tariffs Whether or not there
was this queer arrangement Of free zone.
The best way TO put nm end 10 smuggling
would be for Congress 10 pass the legisla-
ton needed TO carry into effect the nc
ciprocity treaty with Mexico.