The record-union. [volume] (Sacramento, Calif.) 1891-1903, 1897-10-10
FREE ZONE IN MEXICO.
ONCE 1T HAD BOUNDING AND
BOUNDLESS PROSPERITY.
No Longer without a Tariff Wall
but 1t Receives Materials at
Low Duty.

Several unsuccessful attempts have
been made in the past to secure legisla-
ton from the Congress of the United
States which would allow of the estab-
lishment of what is known as a free
port, that is, a place where imported
materials can be landed free of duty,
with the idea of manufacturing the
same at said port and upon the pay
ment of the regular duties upon the
manufactured goods, shipping them
into the interior, says the Kansas City
star" The late Austin Corbin was
particularly active in this direction and
conceived an elaborate plan for the
establishment of such port on the
eastern end of Long Island. His work
found expression in numerous articles
in the public prints and in a bill which
has been before Congress for several
years. but which has received little en-
enlargement.
Mexico has had for many years what
practically amounts to free port. 1t
is known as the "Zona Libre," or free
zone. 1t is a strip of territory along the
northern boundary of the republic, 70
width. and extending from the Gulf of
Mexico to the Pacific Coast, distance
of 600 miles. Foreign goods entered
for consumption within this zone pay
only 10 per cent of the regular sched-
ule Of Mexican import duties. In pr1eI,
Mexico maintains along her northern
boundary two customs lines Goods
passing the first line are assessed 1872
ne. cent. of the regular duties and II
thew mass the second. 20 kilometer to
the south. they pay the remaining SIZE
per cent. This applies only to goods
entered for consumption within the
zone. for the full tariff is collected at
the first line on all goods intended orig
inalIy for shipment into the INTERIOR
TINS necessitating only one collection.
The southern boundary of the zone Is
therefore of small moment to the Mex
lean Government as a revenue pro-
Queer, but is a constant source OF trou-
BILE. inasmuch as it presents me OPP
portunity for smuggling.
Mexico is a country Of high import
duties. which, added to the protection
furnished by a money deprecated oo
almost impassable tariff wall. Against
this background the operations oil the
free zone are thrown into strong re-
lief. and as the people of the United
States are more concerned with this
border commerce than any other people
dealing with Mexico, the history OF
the zone, it's influence upon trade ana
the question of it's permanency become
of national interest.
The physical characteristics of Mex
leo are such that for many years the
entire population of the northern por-
ton of the republic was contained in
the narrow valley Of the Rio Grande,
whose shifting course marks the north
ern boundary of the republic for many
miles. Transportation of supplies
from the south was almost impractical
BILE, owing to the distance and the char
acter of the country traversed. The
turbulent spirit of a then unstable peo-
pie made it dangerous and uncertain as
we'll The natural consequence was
that the people purchased their sup
plies from the American side of the riv-
er, despite the high tariff imposed by
to build up the industries of the south
ern portion of the republic. In Ia
maulipas, the most eastern of the Dor
der States, the people finally took mat
ters into their own hands, and, ignor-
ing the constitutional rights of the
Federal Government. established free
zone along the northern border, into
which foreign goods could be brought
without the payment of duties. re-
bellion was threatened unless the Fed
eral Government recognized and rati-
fed this action, and March II, 1858,
during the administration of President
Juarez, the Mexican Congress estab-
lished this zone as a Federal institu-
ton. Shortly after this the breaking
out of the civil war in the United States
gave to this free port a peculiar value
as a neutral point for the landing of
war materials for the south and for
the shipment of her products to for
eign markets. 1t became the busiest
place upon the continent and the sto-
ries told of it's social and business life
during the war excel the widest tales
of the days of "fortynine" in Califor-
MIA. In speaking of the effect Of the
establishment of the free zone at THAI
time a spectator Of the scenes which
followed says:
THE law had but little effect upon
our commerce until the opening of the
Civil War. With the Southern States
in revolt a free and neutral port on
the border became at once of vast i'm
portance. Contrabands of war and
supplies of all kinds could be bought
in New York or Europe and sent to
Matamoras, neutral port. From a
mere village Matamoras grew within
three years to the third port of the
world. with eighty vessels at a time
anchored off the dangerous roads at
the mouth of the Rio Grande. Bagdad,
at the mouth, grew from nothing to
1900 inhabitants, while MatamOras
had 10000 including representatives
from every commercial nation in the
world The wickedness of the towns
of Scripture fade away before that of
these two during the years from 1861
to 1860 Men made or lost a fortune
before breakfast buying or selling sup
plies or cotton The smallest change
for a gentleman was a 50 gold piece;
for a la borer a Mexican dollar. Cotton
was wagoned from east of the Missis-
sippi across the plains of Texas to
seek a neutral port for export. When
the Southern Confederacy collapsed,
the IONA Libre lost al national i'm
portance and steadily declined in val
ne. Matamoras still has the iona Lii
bre, but her commerce has become in
significant and her present population
does not exceed 5000.
AS the settlement of the Mexican bor-
,5o,- o--far5aJ i,,4o Al.