Mr. Seward to Mr.
Plumb.
No. 105.]
Department of State, Washington,
September 30, 1868.
Sir: I give you herewith a copy of a note which
has been received by me from the Secretary of the Treasury, in relation
to existence on the Mexican bank of the Rio Grande of a belt of country
which is free from import duties on commerce. This condition of things
the Secretary of the Treasury thinks cannot be beneficial to Mexico
while it is injurious to the revenue system of the United States. This
subject will be far better understood at Mexico than it can be here. It
is not our right to require Mexico to modify her tariff laws for our
convenience; nevertheless it is the custom among friendly nations to
give respectful attention to suggestions mutually made of that
character. You may confer with the minister of foreign affairs on that
subject.
I am, sir, your obedient servant,
Edward L. Plumb, Esq., &c., &c., &c.
[Page 595]
Mr. McCulloch to Mr. Seward.
Treasury
Department,
September 26, 1868.
Sir: I have the honor to transmit herewith
a copy of a communication dated the 21st instant, from Mr. Samuel A.
Beldon, of Brownsville, Texas, in reference to the existence on the
Mexican side of the river Rio Grande of a belt of country which is
free to commerce.
It is alleged by Mr. Beldon, and it has also been represented to the
department through other sources, that by reason of the existence of
such free belt of country, the loss to the revenue by means of
smuggling is immense and continually increasing, and that it
seriously affects the growth and prosperity of that portion of the
United States which borders on the Rio Grande.
In view of these representations, it is respectfully suggested
whether it would not be advisable to bring to the notice of the
Mexican authorities the exemption of that section of country lying
in the immediate proximity to the United States, from customs,
duties, and exactions which, so far as I am advised, are enforced
throughout the residue of the republic, thus inviting importation of
merchandise with a view to its introduction into the United States
without the payment of duty, and imposing a heavy expense on the
United States government for the protection of the revenue on that
frontier, without any corresponding benefit to Mexico, that I can
perceive, which would justify a measure so injurious to a
neighboring and friendly power.
I am, very respectfully,
H. McCULLOCH, Secretary of the Treasury.
Hon. William H. Seward, Secretary of State.
Mr. Beldon to Mr. McCulloch.
Washington City, D.
C., September 21,
1858.
Sir: Some time in the year 1857 or 1858 the
governor of the State of Tamaulipas, Mexico, issued a decree
authorizing the merchants and citizens, inhabiting the strip of
territory embraced in the portion of the State extending from the
mouth of the Rio Grande to its furthest boundary, and from the river
inland for two leagues, to introduce, free of duty, merchandise of
all classes.
This is known as the zona libre, (free belt,)
and the decree of the governor was in operation for three years
before it was ratified by the general government, and is in full
force at this time, notwithstanding the protests of the cities of
Tampico and Vera Cruz against it as partial and unjust. The
government was not in a condition to refuse any demand of the
frontier, because of the heroic defenses which the inhabitants had
made against Carvajal and other raiders. The merchandise introduced
under this decree is required to pay duties only when exported from
the zona libre to the interior of Mexico, or
to the United States side of the Rio Grande, and its effect has been
most disastrous to the commerce of the city of Brownsville, and
other towns on our side of the Rio Grande, as well as to the revenue
of the United States. No argument is required to prove this, nor can
there be any doubt that it is the cause of the immense amount of
contraband trade upon the frontier, the inducements to which are
irresistible to such as are willing to engage in it, particularly in
liquors and foreign merchandise, which can be purchased at Matamoras
at a very small advance over the foreign cost, and their
introduction into the United States at some point in an extended
frontier of upwards of nine hundred miles cannot
be prevented.
Prior to the existence of this decree the amount of merchandise in
the United States bonded warehouses at Brazos de Santiago and
Brownsville ranged from one to three millions of dollars, but since
that period the trade has dwindled to such a point that the
custom-house there, instead of being a means of revenue, is an
expense to the United States.
For the removal of this incubus upon the trade of the citizens of our
frontier, they are without power, but think that the relations which
have existed between the governments of Mexico and the United
States, since the passage of the decree, will justify prompt action
on the part of the United States to terminate so flagrant an
injustice.
Very respectfully,
SAM’L A. BELDON, Of Brownsville,
Texas.
Hon. Hugh McCulloch, Secretary of the Treasury.
