Public Finances in Mexico: From Centralism to Federalism (1825-1889)
The Public Finances of the Central Regime
Mino concluded that there was continuity in the organizational and functional principles of public finance in Mexico between 1825-1889, and subsequent reforms were directed to streamline the collection and management of fiscal resources. Carlos Riguzzi and Paolo Marichal, in two subsequent essays, discuss in detail the nature of taxation and the organization of the revenue of the Treasury of Mexico State. The clarity of approach and the excellent organization of the two authors’ exhibitions are noteworthy. In particular, Riguzzi focuses on the quantitative analysis of revenues and expenditures of the State of Mexico compared to their movement and quantitative changes in the federal sector, allowing him to achieve precision and clarity in his periodization of the stages and the statistical handling of the period 1870-1920. Marichal skillfully articulates the classic periodization of national political history (centralist-federalist stage) with administrative and quantitative developments of public finances at the state level, to settle his conclusions from the taxation of Mexico State, in the fierce debate about policy and the existing economy of the period 1824-1870. However, even in the text, the graphs that the author offers separately facilitate the reading of the work.
Although the fundamentals of the scheme were issued in 1836 by the constitutional laws, the hub was established in 1835.
The Centralist Republic (1835-1846)
Since 1833, the nation was shaken by the problems that were aired in Mexico City. After President Santa Anna was granted leave, the acting vice president, Valentín Gómez Farías, tried to carry out, with the support of the majority in Congress, a deep reform of society that would follow the principles of liberalism. Its main objectives were the following:
- Secularize education
- Confiscate Church property
- Limit the growth and social force of religious orders
- Give the government the exercise of royal patronage that ruled during the colonial era.
The reaction of the clerics and their supporters was so strong that Santa Anna had to turn back, and also condescended to the political interests of disgruntled groups who advocated the abolition of the federal system and the implementation of the central republic. In late 1835, Congress established the central republic as a form of political organization in the country, regardless of opposition from many states, Texas among them, that under this pretext began the war for independence from Mexico.
In the central republic, states became “departments”, and a governor was appointed in the nation’s capital. There was also a departmental meeting or assembly composed of elected deputies, whose function was the simple advice of the governor. With this political regime, it was intended to closely control the entire country from Mexico City, especially regarding the collection and spending of public revenue, because it was said that in the capital, the abuse, disorder, and mismanagement of public money was scandalous in the country. The centralist regime lasted from October 23, 1835, to August 22, 1846, with an intermediate period (October 7, 1841, to December 31, 1843) in which President Santa Anna actually ruled without a constitution. These changes in the national scene deeply influenced the political life of Mexico.
On the other hand, the governors were required to have the formation of the exact reason and circumstances of each of the income or branches that formed the exchequer, as also the number of general and special office rents within their constituency.
The control exercised by the senior leadership of Finance also spread to the war branch, which had the following responsibilities: to intervene in all grocery purchases and contracts concluded for the supply of troops, forts, warehouses, and hospitals, in cases of march, camp, and barracks and regarding the provision charged to the estate. There were also obligations as managers trained annually and moved to higher headquarters, leaving the service of all employees of their spring, with a rating of ability to promote the appointment of visitors to government and other subordinate offices. Finally, the employees could not be business agents to bring their same offices, or receive any pretext any gift or gratuity.
B. Organization and Control of Public Finances from the Restoration of the Federal System
If time and repeated trials were the only agents of perfection in human works, it would have been concluded that after 25 years of independence and multiple provisions issued on public finances, this was well organized for the year 1846, which restored the federal system. But there was not the organization required and desired in this aspect, so as to try to achieve it, various orders continued to be issued in the second period of the federal system.
Settlement of the Administration and Military Records
In exercise of the powers granted by the law of 1851, an executive decree was issued on February 24, 1851, by which the General Commissariat for the Army and Navy was established as a center of military records in administrative matters, directly subject to the secretary of war and finances in the area of how much and why. The cash was delivered to the police funding in the budget of the armed forces, and this office will distribute according to the orders of the secretary of war.
In addition, four deputy commissioners were established permanently in the military to make payments outside the capital and provided that where there were no deputy commissioners to exercise functions corresponding to managers, exclusive execution to police headquarters. It also warned that in all these offices, the accounting will be based on the double game.
Settlement of Estate Offices in the Civil Sector
Sorted accounting and administration and military deals with the civil decree of February 28, 1851, issued by the authority of law. For the fifteen districts, some of them comprising two states, finances were established, and for each, the number of desirable battlegrounds was designated. These employees were immediately subject to the general treasury and should not do more than what this office ordered them, always being well paid since the adjustment and accounting for payments and receipts should be exclusively in the general treasury.
It also ordered double accounting, and when considering it necessary to standardize the accounting system, established regulations were issued in six sections which were: accounting, treasury, budget and general accounts, internal debt, Reza, and settlement.
It was also ordered that the treasurer, the chief accountant, and the first bookkeeper provide satisfactory management to the minister of finance and that the cashier also comply with this obligation.