Speech #550111003

Tex.. for instance. on the north bank of the Rio Grande. commodities and the necessaries of life. such as provisions and clothing. were bought at a low price. while at Matamoras. on the south bank (Mexican side). the same articles of domestic production. and often of an inferior quality. cost twice and even four times as much as at the stores just across the river. The difference in taxationHe means tariffsand consequently in prices on the frontier. brought about one of two results. It either caused the inhabitants of the Mexican towns to emigrate to the settlements on the other (American) side of the river in order to enjoy the advantages which were to be had in this country. or it induced them to purchase in the United States the goods which they needed and to smuggle them across the river to their homes in Mexico. " This condition of affairs in 1849 forced the Mexican Congress to pass a law reducing duties through the customhouses of the State of Tamaulipas on provisions to be used by the people of that State. This was the first step to the present Mexican Free Zone law. and in 1858 the governor of that State issued a decree establishing the Free Zone in that State. This decree exempted all foreign goods intended for use in the frontier towns of that State from the payment of all duties. But when removed to the inland towns of Mexico the importer had to .pay the regular duties. The reason for the establishment of the Free Zone is explicitly stated in the words of the decree. viz: Whereas our towns on the northern frontier are in a state of actual decadence for lack of laws to protect their commerce. and Whereas. being situated in close proximity to a commercial nation which enjoys free trade. they need equal advantages in order not to lose their population. which is constantly emigrating to the neighboring country. now. therefore. desiring to putan end to so serious an evil by means of franchises which have so long been demanded by the frontier trade. etc.. I have seenfit to decree as follows. etc. This decree was approved by the Federal Congress of Mexico in 1861. and was extended in 1870 and in 1885 so as to include the whole boundary between Mexico and the United States. and at present 18 per cent of the regular duties must be paid before goods can be introduced into the Free Zone from this country.