By Robert A. Potash
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Extra info for Mexican Government and Industrial Development in the Early Republic: The Banco De Avio
Nevertheless, from the viewpoint of farmers and artisans trying to compete with imported products, the new tax gave them an added measure of protection in all but a few parts of the country. Page 21 This was not the only tax change that redounded to the benefit of domestic producers. In the allocation of revenues between federal and state governments, the Constituent Congress allowed the latter to impose a 3-percent consumer tax (derecho de consumo) on foreign goods sold within their respective jurisdictions.
26 The decade after 1793, however, saw a transformation in the position of Guadalajara as a textile center. In 1803, it was reported that 20,000 individuals were engaged in full or part-time employment in the manufacture of textiles. S. 27 Guadalajara was not the only area to enjoy an expansion in the fabrication of textiles. Certain of the older centers also benefited from the demand created by international wars. 28 Querétaro, the woolen leader, also prospered. The steady growth of the industry there may be measured in the statistics for wool consumption, which rose from 46,000 arrobas (units of twenty-five pounds) in 1793 to 64,000 a decade later, and to 83,000 in 1808.
12 The tariff act thus fell far short of guaranteeing the domestic market to locally made cloth. Such cloth continued to be sold, but apparently not in the volume enjoyed before independence. From the results of the tariff act, it would almost appear that the provisions affecting cotton textiles were designed more to increase government revenues than to protect the domestic industry. What was true of cotton manufacturing appears equally applicable to Page 15 other artisan industries. Despite what seemed to foreign eyes as artificial valuations and excessively high duties, 13 the tariff law was not a protective one in the light of Mexican realities.
Mexican Government and Industrial Development in the Early Republic: The Banco De Avio by Robert A. Potash