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shall terminate the constitutional period.

ARTICLE 82.

The President, upon taking possession of his office, shall swear before Congress under the
following formula: *' I protest 10 perform loyally and patriotically the functions of President
of the United Mexican States; to keep and cause to be kept, without any reserve, the consti-
tution of 1857, with all its additions and reforms, the laws of reform, and all those laws ema-
nating therefrom, watching everything for the good and prosjwrity of the union." The Sec-
retary of Department, who may take provisional charge of the Executive power, in its case,
is exempted from this requisite.*

*******

Therefore, I order the same to be printed, published, circulated, and that due compliance
be had therewith.

Given at the national palace of the union, in Mexico, on the 24th of April, 1896.

PORFIRIO DIAZ.



• Here follow the names of deputies signing.



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390 MEXICO: ABOLITION OF INTER-STATE TARIFFS.



ABOLITION OF INTERSTATE TARIFFS OF MEXICO.*

I inclose herewith a copy and translation of a decree of the President ol
the Republic of Mexico, declaring that articles 1 1 1 and 1 24 of the federal
constitution of the United States of Mexico have been amended and certain
additions made thereto. The President's decree states in full the amend-
ments and additions.

M. W. RANSOM,

'vIkxico, May 6y 18^6, Minister,



[Translation of decree published in the Diario Oficial, May i, 1896.]
AMENDMENT TO THE MEXICAN CONSTITUTION (INTERSTATE CIJSTOMS DUTIF^ ABOLISHED).

The Congress of the Union has decreed the following:

The General Congress of the Un ted Mexican States, in conformity with the provisions
of article 127 of the federal constitution, and with the previous approbation of the Slate leg-
islatures, declares articles ill and 124 of said constitution amended and an addition made to
same in the following terms :

First. Section III of article in of the federal constitution is amended, and an addition
made to the said article in the following terms :

The States shall not —

III. Coin money, issue paper money, stamps, or stamped paper.

IV. Obstruct the transit of persons or goods crossing its territory.

V. Prohibit or molest, either directly or indirectly, the entrance or exit, to or from its ter-
ritory, of national or foreign merchandise.

VI. Obstruct the circulation or consumption of national or foreign goods by means of
imposts or taxes that may be exacted through local custom-houses, by requiring the inspec-
tion or registration of packages, or by requiring the documentation to accompany the mer-
chandise.

VII. Decree or maintain in force laws or fiscal decrees which may cause differences of
taxes or requisites, by reason of the source of national or foreign merchandise, whether these
differences be established in regard to a like production in that locality or on account of like
production from different sources.

Second. Article 124 of the federal constitution is amended in the following terms:
Artu LE 124. It is the exclusive faculty of the federation to obstruct merchandise, im-
ported or exix)rted, or which passes in transit through the national territory, likewise to regulate
at all limes, and even to prohibit for reasons of policy and security, the circulation within
the Republic of all merchandise from whatever source; but the said federation can not es-
tablish or decree in the district or federal territories the taxes and laws expressed in Sections
VI and V of article ill.

Transitrry article. — These amendments and additions shall take effect on the 1st of
July, 1896.

SUPPLEMENTARY DECREES.

I have the the honor to forward three decrees, recently issued by the
President of Mexico, which were necessary to carry into effect the constitu-



♦ For description of these lariffs.sce Consi'lak Reports No. 183 (December, 1895), pp. 490-495, and No.

189 (June, 1896), p. 354.



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MEXICO: ABOLITION OF INTER-STATE TARIFFS. 39 1

t'onal amendments relative to the abolition of the alcabalas, or interstate
duties. These decrees are as follows:

(i) Decree abolishing the tollgate and consumption duties in the Fed-
eral District.

(2) Decree establishing the imports custom-house at the City of Mexico.

(3) Decree establishing a 7 per cent stamp tax upon foreign imports.

M. W. RANSOM,
Mexico, May 16, i8g6. MinisUr,



[Translation of decree published in the Diario Oficial, May la, 1896.]
TOLLGATE AND CONSUNfPTION DUTIES.

Article i. From ihe ist of July of the present year, the porlazgo (toll) duties on na-
tional goods and the consumption duties on foreign goods shall cease in the Federal District.
On the same date, the principal administration of rents of the district, with all its depart-
ments, shall be suppressed.

Art. 2. The employees who, in virtue of the present law, may be left without employ-
ment, and whose services may not have been utilized in some other service of the federation,
States, or municipalities, may be assisted during the first three months with half the salary
which they received at the time when this law comes into effect, such assistance in all cases
ceasing on the day when they are appointed to some other office. The granting of this priv-
ilege is entirely by permission, and can only be obtained by those employees who have been
in service for one year at least, without unfavorable notes against them.

Art. 3. The building, warehouses, and courtyards of the Santiago custom-house at this
capital shall be in due form delivered on the 1st of July by the collector of customs to the
collector (or administrator) of the imports customhouse of Mexico, established by a different
law bearing even date. The national or foreign goods which, for whatever motive, may be
warehoused in the customhouse shall also remain in the custody of Mexico's custom-house
and on the conditions and for the time determined upon by the laws, regulations, and re-
spective documents. All these goods shall, in accordance with the provisions of article I, be
exempted from the portazgo and consumption duties, whatever be the date of their extraction
from the warehouses, and shall only be subject to warehouse charges and other taxes to which
they are subject, excepting those mentioned.

Art. 4. Railroad companies connecting the capital with any other point within the Re-
public, outside of the Federal District, shall continue, as heretofore, making the delivery of
the goods which they transport to this capital and the loading and unloading of merchandise
in transit, at the custom-house at Mexico, subjecting themselves in the management thereof
to the regulations that may, for this pur[)ose, be issued by the Department of the Treasury,
which may authorize, in exceptional cases, the unloading of goods at determined places or
stations.



[Translation of decree published in the Diario Oficial, May 12, 1896.]
IMPORTS (USTOM- HOUSE IN THE CITY OK MEXICO.

Article i. On the 1st of July next, there shall be established at the City of Mexico, a
custom-house of imports, as auxiliary to the frontier and maritime custom-houses connected
by railways with the capital, for the dispatch of foreign goods within the terms to be author-
ized by the general ordinance of custom-houses and future dispositions.

Art. 2. The custom-house of Mexico shall not carry an account of its own, and its mis-
sion shall be that of continuing the operations of the maritime and frontier custom-houses



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392 MEXICO: STAMP TAX ON FOREIGN GOODS.

through which the imporialions have l>een made of goods that maybe revised and dispatched
at the capital. The operations of the custom-house at Mexico shall, therefore, concentrate to
the accounts of the forwarding custom-houses, which they shall consider, each at its time, as
its own receipts, those which may l>e verified by the custom house at Mexico by reason of the
merchandise imi)orted through them.

Art. 3. As an exception to the j^rovisions of the foregoing article, the custom-house of
Mexico shall keep a special account of the receipts had therein, for the duties caused by the
sale of goods imported free cf duty by the companies empowered so to do, or by reason of
the dispatch of postal packages when the payment of such duties is made in the capital.

Art. 4. It is the exclusive jwwer of the Treasury Department to authorize the dispatch
of foreign merchandise which, owing to its delicate nature, would present inconveniences to
their revision at the ixjrts of frontiers; and the custom-houses of entry are only empowered
to allow, without the express order of the Department, the disjmtch at Mexico of goods des-
tined to the Federal Government and for foreign diplomatic ministers and agents, as well as
the baggage brought along by [jassengers and artistic companies.

Art. 5. Imported goods or merchandise entering Mexico's custom-house warehouses or
courtyards from and after July I shall be subject to the following charges after the first fifteen
days, whatever be the warehouse or courtyards of the custom-house into which they are in-
troduced: Three cents daily for every 100 kilograms or fraction thereof during the first thirty
days, and 5 cerits daily after that until the expiration of six months. At the expiration of six
months, the merchandise shall be sold at public auction within the prescriptions of the general
custom-house ordinances, and even before that time if it is susceptible of deterioration.

Art. 6. The attributes, responsibilities, and obligations of the employees of the custom-
house at Mexico shall be the same, in regard to their different functions, as those which em-
ployees of equal rank have in the other custom-houses of the Republic.

Art. 7. The observations which may be furnished by the appraising offices to the mari-
time and frontier custom-houses regarding errors in the classification, settlements, charges,
and collection of duties made by Mexico's custom-house shall belong to the exclusive responsi-
bility of the collector and accountant of said ofiice.



[Translation of decree published in the Diario Oficial, May xa, 1896.]
IMPORTS CUSTOM-HOUSK IN THE CITY OF Mfr:XK() — STAMP TAX ON FORKUIN GOODS.

Article i. In place of the 5 per cent consumption duties and of the 2 per cent internal
tax on foreign goods, from and after July I next, a stamp tax shall be levied and paid for
said goods, on the basis of 7 per cent of the imjwrt duties, excluding the additional duties.

Art. 2. The maritime and frontier custom-houses shall receive the duties in cash only,
and shall open a special account for the amounts received thereof, seeing that monthly
remittances are made of such receipts to the proper stamp-tax ofiice, which, in its turn, shall
issue to the aforesaid a certificate in original and duplicate for the amount received, said
receipt being issued from a stub book, which shall be made and kept for that purpose in the
manner provided by the rules and regulations which will be issued for such effect.

Ar I". 3. For the due co.nparison of the special account referred to in the preceding arti-
cle, the customhouses shall remit to the general treasury, including all corresjwnding ac-
C( unts, the original certificate duly countersigned by the same custom-house, the duplicate
and copies of accounts remaining on their files.

Art. 4. The stamp tax on imports shall be levied on goods coming to the free zone,
when the entire amount of import duties, and paid at the time of their imjx)rtation.*

Art. 5. The articles of the general ordinances for the maritime and frontier custom
houses, referring to the 2 per cent internal tax, as well as articles 96 to 102 of the general



*As given in the translation.



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CONVERSION OF THE MEXICAN NATIONAL DEBT. 393

stamp law of the 25th of April, 1893, and all other dispositions relating thereto are abol-
ished.

Art. 6. Goods transported in vessels that may land after 12 o'clock on the night of June
30 next in ports of the Republic, or that may l)e transix)rted on railroads crossing the Mexi-
can frontier after that liour and date, are subject to the import stamp tax established by this
decree.



CONVERSION OF THE MEXICAN NATIONAL DEBT.

I have the honor to inclose herewith the decree of the President of
Mexico relative to the conversion of the national debt of the Republic, of date
October 31, 1895, the same having been clipped from the Diario Oficial.
A translation of the same is also transmitted.

M. W. RANSOM,

Mexico, Nm^embcr ^, i^gs- Minister,



[Translation.]

In virtue of the power granted to the Executive by the Congress of the union in the
law of May 29, 1893, and considering that, after the extension of lime granted by the decree
of June 29 last of the term set forth in the decree of the 6lh of September, 1894, for the
presentation of all titles, credits, and claims against the public debt and its conversion into
3 per cent bonds of the consolidated debt and into 5 per cent bonds of the redeemable debt,
said extension of lime expiring to-day, it is convenient to fix forever the rights of the creditors
of the nation and to establish definitely the obligations which this (nation) may recognize;
that the existence of unusual titles having the character of deferred would leave the settle-
ment of the public del)t incomplete and present inconveniences which the present condition
of the treasury permits of their settlement, offering payment in cash, under equitable reduc-
tions, as soon as the emission of the 3 per cent bonds of the consolidated debt is closed ;
that, in order to abolish completely the very few credits to which the floating debt of the
nation is confined, it is advantageous to point out for the last time the manner of settling
them, so that in future the budgets be without any other obligations in this regard than those
of the interest and redemption of exterior loans and of the consolidated and redeemable
debts, I have seen fit to decree the following :

Article i. The securities charged to the national treasury which, by their not being pre-
sented for their conversion within the term which expires today, in accordance with the
decree of June 29 last, would remain as belonging to the class of those deferred till the
1st of July, 1899, under the conditions expressed in article 16 of the decree of September
6, 1894, can, nevertheless, be converted or paid l^efore the said date of July I, 1899, P^*^*
vided they be expressly included in this decree and the mterested parties subject themselves
to the provisions contained in the following articles :

Art. 2. From the i>t of next November till the 1st of July, 1899, the Clovemment may
continue to admit for conversion the securities belonging; to the first class, referred to in Sec-
tion II of said article 16; but this conversion shall only be made through the reduction in
said securities of 10 per cent on the capital and interest which may have been expressly
agreed to, under the understanding that in no case will there be paid interest after the 1st of
next November. The conversion will be made in 5 per cent bonds of the redeemable debt be-
longing to that series whose emission would be opened at the time of making the exchange, or
by provisional certificates which will be exchanged in their due time for bonds of the following
series, should those of the previous class be exhausted. These provisions shall in no wise



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394 CONVERSION OF THE MEXICAN NATIONAL DEBT.

affect in any manner the condition of the credits referred to in the first section of article 1 6
of the decree of September 6, 1894, which shall continue subject to the conditions of said
section.

Art. 3. All credits of the second class originated before the 1st of July, 1894, which may
not have heretofore prescribed or prescribe in future,* inclusive the certificates for balances re-
gardless of dates, and the certificates issued by the extinguished board of directors of the public
debt and to which credits and certificates reference is made in the third paragraph of said
article 16, may be converted into 3 per cent bonds of the interior consolidated debt, whenever
the interested parties solicit it, from the general treasury of the nation before the said 30th of
June, 1896. The conversion shall be made through a reduction of 20 per cent on the nom-
inal value of said credits and securities of the second class and without payment of interest.

Art. 4. After the 30th of June, 1896, the securities of which mention is made in the
foregoing article shall not be convertible into the 3 per cent bonds ; but they may be paid in
cash, if the condition of the treasury allows it and if there exists an entry in the budget
to which the charge can be made. The payment in cash may be made, at the highest,
at the following figures : At 27 per cent of the nominal value of the securities during the fiscal
year 1896-97, at 28 per cent during the fiscal year 1897-98, at 29 per cent during the fis-
cal year 1898-99, and at 30 per cent from the 1st of July, 1899, on, in accordance with
the provisions in said section of article i6 of the said decree of September 6, 1894.

Art. 5. The correspondibg balances of the calendar year 1894-95 shall be subject to the
prescriptions contained in the two preceding articles, without any other difference than their
conversion at par into 3 per cent bonds of the interior consolidated debt, if the petition be
presented to the general treasury of the nation before the 30th of June, 1896.

Art. 6. The certificates which, in virtue of the decree of June 22, 1885, were issued by
the extinguished board of directors of the public debt, and to which reference is made in Sec-
tion IV of said article 16 of the decree of the 6th of September, 1894, can be admitted to
the conversion of 3 per cent bonds until the 30th of June, 1896, in the proportion determined
by Fraction F of article 3 of the law of the 27lh of May, 1889. From the 1st of July, 1896,
on, said certificates may be paid in cash, at a figure which in no case shall exceed 5 per cent
of its nominal value.

Art. 7. The securities already issued beloni;ing to the special series mentioned in article
6 of the decree of the 6tli of September, 1894, can continue to be convertible into 5 per cent
bonds of the interior redeemable debt pertaining to the series whose emission may not yet be
exhausted, provided in each case that a previous petition be presented by the interested parties
to the Secretary of the Treasury; but those securities shall suffer a discount of 5 per cent
on their nominal value, and they will be cancelled according to the proportions already set
forth by the Secretary of the Treasury for the conversion of the securities of like class, in
accordance with the prescriptions of Article II of the said decree.

Art. 8. The liquidation spoken of in article 9 of the decree of June 29 ultimo can also
continue to be convertible after the 30th of June, 1896, in the very terms prescribed in said
article 9, making only a deduction of 10 per cent in the amount to be converted and liquidated
in accordance with the rules existing at this date. After the 30th of said June, the holders
shall only receive cash in payment of their securities and in the proportions set forth in article
4 of the present decree, taking as basis the nominal value of the 3 per cent bonds referred to
in said article 9.

Art. 9. The emission of the 3 per cent bonds of the consolidated debt coming to a close
on the 30ih of June, 1896, the general treasury shall pul)lish in the Diario Oficial, during the
month of the following August, a detailed list, by numbers and series, of the bonds of the said
debt issued since the year 1886 up to the said 30th of June, 1896 ; also, a list equally detailed
of the bonds of said emission that may have been redeemed up to that time in accordance
with the proper laws. During the same month of August, the treasury shall proceed, in the



*As in the tniiislation.



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NEW BANKING LAW OF MEXICO. 395

presence of the chief cashier of the treasury, to the count of all the bonds of the consolidated
debt which may exist in print and which have not been issued and shall destroy them with
all the due formalities, as prescribed by the Secretary of the Treasury.

Art. 10. The conditions of the decrees of the 6th of September, 1894, June 29 of the
present year, and the other dispositions relative thereto, which may not oppose the present
decree, shall remain in full force.

Therefore, I order it printed, published, circulated, and that due compliance be had there-
with.

Given at the palace of the Federal Executive, in Mexico, on the 31st of October, 1S95.

PORFIRIO DIAZ.



NEW BANKING LAW OF MEXICO.

I inclose herewith a copy of the new banking law of Mexico, which will
go into efTect July i, 1896.

THOS. T. CRITTENDEN,
Mexico, Jun^ 6y i8g6. Consul- General,



NEW WANKING LAW OF MEXICO.

Article I. The Chief Executive of ihe union is authorized to enact a general law, by
which the concession, the establishment, and the operation of all banks of emission in the
States and Territories of the Republic are to be governed. It will be based on the following
rules:

{a) No concession will be granted, unless the concessionaires deposit bonds of the national
public debt, whose nominal value, at par, must equal 20 per cent of the sum which the bank
must have in cash with which to commence operations.

(^) The minimum amount of capital which will be allowed will be $500,000, half of
which must be exhibited in cash before the bank can begin operations.

(c) The amount of actual cash on hand must never be less than one-half of the sum total
of bills in circulation, together with sight deposits, or deposits made with a notice of three or
a less number of days.

{d) No bank can be authorized to emit bills for an amount greater than three times its
capital stock.

{/) The acceptance of these bills will be optional, and no bill of less than $5 will be issued.

(y") Exemptions or diminutions of taxes can only be granted to the first bank which is es-
tablished in any State of the Republic or in any of the federal Territories. The other banks
must pay all taxes established by the general laws, and, moreover, they will be subject to a
special government tax of 2 per cent per year on the amount of their capital stock. Those
now established, providing they subject themselves to the regulations of the general laws, will
be considered as "first" banks, as regards the foregoing portion of this article.

(^) The banks which may be established in a State can not have, outside the limits of
that State, branch houses for the exchange of bills without the special i>ermission of the Ex-
ecutive, who will only grant it in case of very close bonds of commercial interest between the
various States, and such branches can in no case be established in the City of Mexico or in
the Federal District.

\Ji) The Federal Executive will have in each bank an interventor, whose duties will be
stated, and who, in the revision of the annual balances, will have the same powers as the
manager in anonymous companies.



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396 MANUFACTURE OF PULQUE IN MEXICO.

(j) The banks will publish monthly a cash balance, in which will be stated the amounts
due the bank, the amount of silver on hand, and the amount of bills in circulation, and the
total amount of sight deposits, and the amount of notice deposits of three or a less number of
days.

(J) The Executive will not grant any concession until after the enactment of this banking
law, and such concession must be in conformity to it.

Art. 2. The Executive will also have power :

(a) To celebrate contracts with the National Bank of Mexico, by virtue of which and
through an agreed-upon compensation, which shall be judged equitable, any incompatibility
between said National Bank and the concessions granted to others under the general law
may be adjusted.

(6) In order to celebrate contracts with the banks already in existence by virtue of special
concessions, on the understanding that the State banks may enjoy the benefits of the general
law, they will have to renounce the special concessions under which they were established.

(c) The authority conceded to the Executive by virtue of the present article will cease,
as far as celebrating contracts for State banks are concerned, six months after the publishing
of the general law, and for other banks will cease on the 15th of September next.

Art. 3. The provisions which must govern other institutions of credit can also 1^ sub-



Online LibraryUnited States. Dept. of Commerce and Labor United States. Bureau of Foreign CommerceConsular reports, Issues 188-191 → online text (page 52 of 102)