New-York tribune., 1919-03-18

we were overlooking an excellent source OF
revenue
"When it became known that export
taxes were in contemplation. I received
request for an interview from a lawyer,
and when he came he brought with him
stack of books, all, he informed me, the
highest authorities economics and taxa
tlon, in order to prove that export taxes
were impossible. Neither Great Britain,
nor France, nor Germany, nor the United
States, uses the export tax, he said. 1T is
contrary to the policy of all civilized coun-
tries
y am arguments
1T in vain that l pointed out to him
that the countries he named exported
chiefly manufactured goods, not raw ma
terials, and that our country differed in
all respects from the economic policies of
the powers he named.
He went away desparing of the future
of Mexico and convinced that it was use
less to argue with man who couldn't see
reason.
"Ten years from now he may be able to
realize that we were right, for we obtained
a large and necessary increase of revenue
in a way which the people have hardly
felt
On the same excellent authority I am
a Ne to say that the increase in the Federal
revenues during the last three months has
been so great to inspire new confidence
throughout the administration
To illustrate the Importance of this one
reform, the taxation of exports, I quote from
reports of our Department of Commerce
at Washington, the statement that imports
from Mexico to the United States for the
last fiscal year were S140,00O000 and ex-
ports from the United States to Mexico
during the same period were $106893.653
There has been a steady upward trend since
1912, when, according to the same authority,
our imports from Mexico were only $685.
915,313, and our exports to Mexico $52,-
S47l29
In 1913 Mexico drew 48 per cent of its
imports from the United States, and sent
in exchange rs per cent of its exports, and
this proportion has governed international
commerce for the subsequent years, with
a slight increase favoring the United States
In message to Congress last fall, Pres-
dent Carranza announced that the govern
ment had been able to cover "all indispensa-
BILE expenditures" out Of the Federal reve-
nues. In 1917 the Congress had approved
budget of 1S7,OO0ooo pesos. The current
budget, according to President Carranza's
statement to the Chamber of Deputies,
September %, 1918, should be based on a
prospective income Of 149, 900 pesos, of
which I give the most important items. in
pesos:
Import duties es.............. 25,OO00O0
Federal contributions (from
the several states of the
republc) ...,..-.-.--.. 100000
Export duties, ,.............. 100000
General stamp taxes. s........ 100000
Duties on gold. silver, ETC.. Ia, 100000
petroleum ..-............. II 600 900
Petroleum lands. ........ 100000
While the government is paying its wav.
and may be able to do much better in the
future, it must be admitted that payment
of interest on foreign loans has not been
met The Treasury Department figured that
as the government was wholly dependent
upon immediate income, actual running ex-
penses must first be paid and that it wss
better to pay the inte ,st in part only until
better times were at md
Fill Not Repudiate
There has been no disposition, however.
to repudiate any legitimate claim. 1t is true
that at the beginning of the Constitu
tionalist Government it was resolved to
repudiate all the loans Huerta might have
made abroad, but, to again quote President
carranza's message to Congress:
Nevertheless, the Consttutionalist Gov
ernment does not shirk the recognition of
ali legitimate obligations contracted previ-
Gus TO the revolution, and consequently
considers as outstanding the debts covered
by Huerta's administration with bands or
FUNDS acquired by means of unlawful
Ioans''
The amount of the public debt at the
beginning of 1913 was approximately 427.-
100000 pesos. and up to the beginning of
the present year, interest due and pending
payment to date approxmated 100000
pesos
Tho four years struggle before the Con-
Htitutionalist Government came into its own