forced loans, and extraordinary financiering devices,[1] in order to meet the most pressing demands of the moment. All persons and corporations were in turn compelled to contribute.[2] Among other auxiliary devices, a house-tax and a war-tax were established.[3]
During the earlier years of the revolution, the revenue and expenditures were enormous; but toward the close of the war, the combined ordinary and extraordinary sources of supplies declined to less than one third of their original productiveness,[4] while the government debt had been more than doubled, and when the last viceroy left the shores of Mexico, the liabilities of the treasury exceeded $75,000,000.[5]
After Mexico became independent, the rulers went to extremes in their liberality, and by inconsiderate reduction of duties and taxes, as well as by opening too suddenly the avenues of commercial enterprise, the government soon found that the receipts of the exchequer did not correspond with the ill-judged estimates. Iturbide restored in his time some of the taxes which had been abolished, and issued paper money, which only obtained a partial circulation by the sacrifice of two thirds of its nominal value.[6] After
- ↑ In Jan. 1812, $2,000,000 was demanded, which sum was delivered in gold and silver plate to be coined. In 1814 $500,000 was exacted with threats, of which $300,000 was collected from the merchant class. Repayment of the principal, or even interest, on those loans was rarely possible. Alaman, Hist. Mej., iv. 215-16; Gaceta, Mex., 1812, iii. 116-18, 124-5; 1820, xi. 224–5.
- ↑ The contributions forced upon the capital alone during the war amounted to $12,600,000. Méx., Mem. Min. Hac., 1823, 65.
- ↑ Ten per cent on the rents of all dwelling-houses, one half paid by the owners, and the other by the tenants. This must have yielded largely, and was continued in force until the independence. Private carriages, hired vehicles, and riding-horses were also taxed. A duty was also imposed on mescal. Dispos. Var., ii. 26-30; Pinart's Coll., i. print 21; Cedulario, MS., iv. 34; Soc. Mex. Geog., Bol., x. 512. It is not possible to furnish exact financial statistics for this period, as the govt archives were plundered to conceal former robberies. Ward's Mex. in 1827, i. 365.
- ↑ Receipts for 1813 were $45,072,804; expenditures, $45,015,895. It is clear that enormous sums were raised by loans. Gaceta, Mex., 1814, v. 34-5. In 1820 the revenue from all sources only reached $14,405,574; the expenditures being $14,631,941. Méx., Mem. Min. Hac., 1844, 7.
- ↑ As ascertained by the Junta de Crédito Público. Id., 1848, 22-7; Id., 1870, 75-6.
- ↑ The republican govt subsequently redeemed this paper. Id., 72-3.
