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564 of October 1845 of about forty per cent, owing to the mass of low-duty goods flooding the markets. The measure was also intended to counteract the ruinous contraband trade, facilitated more than ever by the Guadalupe treaty. A further reduction not being deemed advisable, the government was instructed to increase the revenue cruisers and coast guards; but lack of funds and official dishonesty rendered the order of little effect. Traders grew rich publicly by the traffic. Local authorities or conspirators would raise a dispute or pronounce, with a view to remove the federal officials, when the opportunity arose for obtaining large plunder; or they joined in favoring irregular importations at the ports, lest the treasury should lose all through smuggling.

The total estimated revenue for the year 1849-50 was $8,000,000, of which $3,500,000 came from import and export duties, and $1,000,000 from state contingents; while the expenditure was placed at $16,500,000, whereof $5,800,000 toward the debt and $7,600,000 for the war department, leaving a deficit of $8,500,000. For the following year the income and expenditure were placed at $9,000,000 and $20,300,000 respectively, showing a deficit of $11,300,000. These debit balances had to be met, the easiest