No. 338.
Mr. Foster
to Mr. Evarts.
Mexico, December 18, 1878. (Received January 9, 1879.)
Sir: In conformity with the legal requirements, before the adjournment of Congress the minister of finance submitted to the Chamber of Deputies the estimates of receipts and expenses of the federal government for the next fiscal year. From the minister’s report I have compiled the following tables:
estimated receipts.
| Import duties at custom-house | $10,561,007 62 |
| Export duties—silver, gold, and orchilla | 936,416 59 |
| Tonnage dues | 43,578 64 |
| Introduction and consumption duties of federal district | 1,109,920 00 |
| Direct taxes, real estate, &c., federal district | 525,150 00 |
| Product of stamp-tax | 1,800,000 00 |
| Rent of mints | 342,014 87 |
| Post-office gross receipts | 445,156 29 |
| Lottery tax | 269,408 66 |
| Miscellaneous sources | 269,802 38 |
| Total receipts | 16,303,455 05 |
estimated expenses.
| Legislative power | $979,862 00 |
| The executive office | 48,572 40 |
| The judicial power | 346,878 00 |
| Department of foreign affairs | 193,960 00 |
| Department of government | 2,628,819 50 |
| Department of justice | 1,236,592 20 |
| Department of public works | 3,642,380 00 |
| Department of finance | 5,595,840 39 |
| Department of war | 8,661,912 45 |
| Total expenses | 23,334,636 94 |
The foregoing shows an increase in the estimates of expenses over those of the current year of $1,585,000. It also shows that the total receipts will fall over seven millions of dollars short of the estimated expenditures, or that the government will only be able to pay about seventy per cent, of its current expenses. The minister, in view of this prospective [Page 771] embarrassment, calls the attention of Congress to the necessity of equalizing the receipts and expenses, which can only be done by reducing the expenses or increasing the receipts. He states that the first method, which appears to be the most simple, has, up to the present, been decided to be impracticable, as since 1867, when the republic was reestablished, continuous efforts have been made to reduce the expenses, and so far from being successful the estimates approved by Congress have each year, with few exceptions, amounted to a greater sum than those of the year preceding. It being regarded as impossible to decrease the expenses, the minister recommends as the best method of increasing the receipts, that additional stamp taxes be imposed. He recognizes that this method of taxation is unpopular, but in view of the great difficulties presented to the imposition of new taxes of any description, that of stamps appears to offer the fewest obstacles.
The stamp tax, which is already regarded as burdensome, only produces $1,800,000 at present, and it would seem impracticable to so enlarge its operations as to yield four times that sum.
It may be confidently anticipated, therefore, that, even if peace continues, there will be, during the next fiscal year, a large deficit in the federal treasury.
I am, &c.,