The War with Mexico, Volume 2 (of 2)Smith, Justin Harvey
History
The War with Mexico, Volume 2 (of 2)
Smith, Justin Harvey
Mexican War, 1846-1848
His primary aim was to support the war. This he intended to do because
he felt an ardent patriotism, but other reasons also lay in his mind.
Abominating the military class, he desired to have as many as possible
of the corrupt officers left on the field, and he designed to keep the
army so busy, that it would not be able to prevent the states, which
were generally Federalist and democratic in sentiment, from organizing
their strength, and making sure that no tyrannical central power would
ever raise its front again. But the first requirement for military
operations was money. Farías had, therefore, to take up immediately the
financial problem, and he found it most difficult.[21.3]
Of all the fields of Mexican misgovernment the worst had been the
treasury, for it not only required a care and a good judgment that
were peculiarly foreign to the national temperament, but provided
opportunities for illegitimate gains that were most congenial. During
Spanish rule the needs of the country had been fully met, and about
nine millions a year, almost half of the revenues, left as a surplus.
Under Itúrbide a financial system which three centuries of able
administration had built up was despised, and with mines abandoned,
agriculture discouraged, commerce paralyzed, honesty relaxed, taxes
diminished for the sake of popularity, and expenses increased for the
sake of glory, the foundations of ruin were promptly laid. The logical
superstructure soon mounted high in the shape of two British loans,
which bound Mexico to pay about twenty-six million dollars in return
for about fifteen, a large part of which was practically thrown away by
her agents.[21.5]
[FINANCIAL DIFFICULTIES]
The expulsion of the rich and thrifty Spaniards, the costs of civil
wars, in which the nation paid for both sides, unwise and unstable
fiscal systems, borrowing at such rates as four per cent a month,
incredibly bad management,[21.4] and methods of accounting that made it
impossible for the minister of the treasury to know the actual state of
things, were enough to complete the edifice; but they were supplemented
with peculation, embezzlement, multiplication of offices, collusion
between importers and customhouses, and systematic smuggling winked at
by half-starved officials. Revenue after revenue was mortgaged, and by
1845 the government found itself entitled to only about thirteen per
cent of what entered the treasury.[21.5]
Public-domain text, read in full here on John Shaqi.
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