New-York tribune., 1901-02-24
THEFINANCESOF MEXICO
EY-.SECRETARE FOSTER ON
THEIR REHABLLTTAT TON.
TIE ABLE MANAGEMENT OF AFFAIRS
RY PRESIDENT DIAZ HAS BROUGHT
AN ERA OF NATIONAL
PROSPERITY.
City of Mexico. January 2s.

City Of Mexico, January 23.
The most conspicuous evidence Of the good
effects Of the manag gement Of affairs by Presi-
sent Diaz is seen in the financial condition OF
tbe country, both official and private. When he
assumed control the financial condition could
bardly have been more desperate. The revenues
!, the Government since the re-establishment OF
,be republic had almost constantly shown a def
icr The public creditors. domestic and for
sirn. we're unsatished. For many years the in
terest on the foreign debt had been defa ulted
rs bonds had no value at home or abroad. and
we're not quoted in the money markets OF
single city Of the world. There were a few pri-
rute banks in the capital but no banking sys-
TEN existed in the republic As a Consequence
and because of the risks Of communication. ex-
.bange between the different cities Of the eoun-
Wv was very high standing at > 10 s, and some
Zines 10 per cent. Although the revenues barely
reached S20Oo0OOO annually, il was very diff
rult 10 collect the taxes on account OF the slug
gish condition Of commerce and industries.
The rigid enforcement of peace and security by
General Diaz soon began 10 bear fruit in
marked Improvement in financial affairs. The
Government early felt its effects in. first.
gradual and finally a rapid. increase in its rev.
enues I do not propose il these letters 10 con-
found the reader with long tables Of figures.
which are the usual accompaniments OF the dis
.usson Of financial and commercial questions.
Il will be sufficient 70 state that the revenues.
which before had been barely S20,00oo00 an
nuaTy soon doubled then trebled. and within
ten years had increased more than sixfold
reaching as high as S14o 000 600
This marvellous increase had its natural effect
upon the policy Of the Government. First. it
enabled il TO extend its aid toward greatly
needed public improvements Il not only grant
ed concessions to an extensive system Of rail
roads but il also contracted TO pay the different
companies liberal subsidies without which il
would have been Impossible for most Of them
10 be built II also entered upon an expensive
system Of harbor Improvements at Vera Cruz.
Tsmpico and other ports. in announcement Of
commerce i made ihc long needed drainage
Of the Valley Of Mexico a success. Every de-
partment OF administration felt rs whole
some efects-the postofice and telegraph ser
vice Government buildings, the schools the
army and the navy.
REVISION OF TAXATION.
This increase in the revenue also enabled the
Government 20 take another important step. 70
sit the adoption Of a complete revision Of the
system ~ taxation Heretofore II had been the
practice q the Government TO rely upon the inn
p0r: and export duties for the greater portion
Of its revenues A new tariff was adopted which.
while il preserved the protective system was
much less burdensome TO foreign commerce, and
abolished almost all tie export duties on Mexi-
car products shipped abroad. system Of in
ternal taxation was adopted which made the
leyies much more equal in their effects, but the
general result was large reduction in taxation
This era Of financial prosperity put it into the
power u the President 10 remove grievous
burden upOn commerce which had long been
the dream II progressive Mexican rulers. the
abolition 0f the -alcahalas." a system Of taxa
ton whereby duties We're collected on products
and merchandise passing from one State 10
ether. II had been declared abolished by the
liberal constitution Of 1867, but the poverty OF