Office of the Historian

No. 367.
Mr. Foster to Mr. Evarts.

Legation of the United States.
Mexico, September 19, 1879. (Received October 6.)
No. 1034.]

Sir: The finance department published on yesterday a statement of the receipts of the federal treasury for the fiscal year ending June 30, 1879, an abstract of which is as follows:

I. Maritime and frontier customs $9,949,708
II. Local customs city of Mexico 1,018,483
III. Stamp tax 3,003,258
IV. Contribution of States 559,217
V. Sale of nationalized property 27,254
VI. Mints 367,922
VII. Public instruction 24,725
VIII. Post-office 679,392
IX. Lotteries 31,822
X. Minor branches 284,942
XI. Balances from last year 1,404,144
Total 17,350,867

The statement shows a decrease of receipts compared with the previous fiscal year of $2,136,602; and as the estimates of expenses were fixed at $21,748,000, the deficit is $4,378,000.

The chief source of federal revenue is from its customs, being more than 50 per cent, of the entire amount. The falling off in the customs receipts amounts to $3,214,933, or 25 per cent., compared with 1877–’78, which would seem to indicate that the foreign commerce of Mexico had [Page 837] largely declined in the past year, or that, as charged by the press, the contraband trade had greatly increased. It is probable that both causes have combined to occasion this heavy decrease in the customs receipts.

I have, &c.,

JOHN W. FOSTER.