MARQUEZ DE LA RIBERA, Spanish Minister to Thomas Murphy, February 9, 1867

[Translation.]

The undersigned, representatives of the friendly powers, residing in Mexico, have the honor to address his excellency the minister of foreign affairs, to inform him that a decree bearing date of the 1st of this month was published the same day in the imperial journal, which imposes an extra tax of one per cent. on city and country property, on manufacturing establishments, and on all commercial and financial affairs where a capital of more than $1,000 is invested, with the hard condition to those concerned who reside in the capital or in the valley that even though the property is situated in other departments, they are to pay tax on it in the capital, when the tax is also assessed and paid in the places where the property is located.

Although this tax is called general, the undersigned cannot consider it as such on account of particular circumstances that caused its imposition.

The minister of finance, who advised the emperor to this, says plainly in the preamble to the decree it is intended as a substitute for a forced loan exacted a few days before, but not carried out, because of the resistance offered, and the government did not wish to resort to coercion, so repugnant to its policy.

This declaration of the minister of finance leaves no doubt about the expression forced loan, from which foreigners would have been exempt as substituted by this extra tax so as to reach everybody. In fact, they are the same thing under different titles.

Foreigners being exempt from that species of contribution by virtue of the law of nations, and treaties in force between their respective governments and Mexico, relative to forced loans and extra taxes, the representatives of the friendly powers have, on previous occasions, protested against similar imposts on their countrymen, though imposed then, as now, on the condition that they were but for a single time; and they have been frequently renewed, and on this occasion twice within three months. The subjects of the nations whose representatives have the honor to address the minister of foreign affairs on this occasion have had recourse to their legations to claim the protection that is due them.

Urged by the necessity of granting it to them by reason of the short time fixed for the payment of the first half of the assessed quota, the undersigned are pleased to hope that the imperial government will be kind enough to consider immediately their representations against a measure that largely involves the interests of their countrymen settled in Mexico.

A large portion of the foreign commerce is now in a precarious condition, owing to the system adopted for the imposition of the patent tax, which is not calculated upon the amount of the effective capital possessed by the proprietors of commercial establishments, but for the inhabitants of the capital, in relation to the place where they reside, and to the kind of business in which they are engaged. The result is, that merchants having only $10,000 capital pay for $40,000, by reason of the place where they live—that is, they pay four per cent., when those having $40,000, but living in a place less advantageous for their business, pay only one per cent.

In spite of the injustice of this system of taxation, instead of reforming it, as was hoped, the government increased it in 1866 by one per cent., so that merchants now pay two per cent. for their patent right.

Laying aside this considerable overcharge, and not considering the troubles of the country, and the complete stagnation of business, that under more favorable circumstances constitutes the prosperity of a nation, article four of the decree cited requires, not the one per cent., but “the triple of the quota that each would have paid per year for single tax, and not double, in conformity to the last qualifications that served for the payment of the last third of the year 1866.”

That the minister may judge of the injury of such a tax, we will mention the case of a Spanish subject who keeps a grocery and liquor store. He represents a capital of $5,000, as assessed by the board of 1865, for that purpose. That man will have to pay the imperial government in 1867, if not exempted from the extra tax, and if no new tax is imposed, as we fear there may be, for the remaining 10 months of the year, the following sums:

which sum represents the third of his effective capital.

The position of property-holders who have real estate in the departments held by the dissidents is still more embarrassing than that of persons in trade. They not only have suffered, and still suffer in the present state of affairs, incalculable losses from the civil war, but the rebel authorities compel them to pay present and back taxes, established by the republican government, besides exactions and forced loans imposed by their military chiefs much too often, so that these proprietors, who certainly ought to be protected in person and property by the government, are abandoned by it, though involuntarily and by vis major, and are compelled to pay double taxes, which will certainly involve them in ruin at no distant day.

If the imperial government, from circumstances known to all, cannot act justly towards them, extending a hand to protect them and preserve their interests, how can it exact from them, without violating those principles of equity and justice which they have for a motto, the payment of taxes, and even extra taxes, like those that occasion the present remonstrance.?

The undersigned, deeming it their duty to protest against an impost so injurious to their countrymen, have the honor to make the preceding statement and remonstrance to his excellency the minister of foreign affairs, in order to persuade the imperial government to take the necessary steps to relieve foreigners of this extra tax.

The undersigned embrace the occasion to renew to his excellency the assurance of their most distinguished consideration.