File No. 812.512/603.

Consul Bonney to the Secretary of State.

No. 175.]

Sir: I have the honor to report that an arbitrary tax of ten per cent ad valorem has been placed upon all shipments of goods out of [Page 967]the State of San Luis Potosí. The tax is intended as a revenue measure and to keep foodstuff within the State. It falls heavily upon local importers whose market is in other States and places them at a disadvantage in their competition with other distributing centers. It will not affect imports which may arrive when importing is resumed, as jobbers will order such new goods sent direct to final destination and will not pass them through San Luis Potosí, but it prevents jobbers, especially in machinery, from reducing stocks already on hand.

I have [etc.]

Wilbert L. Bonney.