Rafael Carrera and the Emergence of the Republic of Guatemala, 1821�1871

18. Production for Consumption and Export

C H A P T E R E I G H T E E N Production for Consumption and Export THE LIBERALS HAD PINNED THEIR HoPEs for the transformation of Central America into a prosperous and modern republic on the rapid increase of exports of tropical agricultural commodities. As early as February 1824, the Guatemalan state government had called on local governments to report on the climate of populated areas, the quality of existing agricultural production, and new crops that might be introduced.1 In the 1830$ cochineal exports grew notably, but the rapid increase in trade the liberals had hoped for had not materialized before they were ousted in 1839. The commercial policy of the conservative governments from 1839 to 1871 was carried forth in the interest of the established merchant-planter community of the capital. In general, it represented a reaction against the free-trade philosophy of the liberals and a return to protectionist and monopolistic principals learned under Spanish rule. Within this framework, the government sought to increase trade and revenues both in domestic and foreign trade. While the policy sometimes lacked consistency and was out of step with prevailing nineteenth-century liberal economic philosophy, it was consistent with the Hispanic traditionalism that so characterized Guatemala in the mid-nineteenth century. A manifestation of the preference for Hispano-traditionalism and annoyanceat the rising use of British weights and measures was a call by the Guatemala City Council at the end of 1840 for standardization of weights and measures according to Castilian standards and the Novisima recopilacion de las leyes de Indias.2 37i 372 / Socioeconomic Change Damage to the native textile industry from imports had been one of the causes of resistance to the Galvez government, and Carrera made clear his support of the weavers. It was the most important native manufacturing industry in the country, but inexpensive European factory imports had damaged it from the late eighteenth century forward.Carrera and the conservatives thus began to challenge the liberal free trade policy. On i6September i84oCarrera proposed to the government that it end the free importation ofany goods that competed with those produced in Guatemala and thereby contributed to the decline of native industry and artisans.3 Ten days later, a letter signed by "El Mataquescuintleco" in the reactionary , pro-Carrera El Procurator de los Pueblos bitterly attacked free trade as the cause of the impoverishment of the people. Supporting a recent petition to the assembly against free trade, it blamed the free-trade policy on foreigners, especially Jews and Arabs, people lacking traditional Christian values. It charged them with trying to destroy Guatemalan agriculture and manufactures.4 In November the assembly asked the Consulado and other institutions to prepare reports on damage to native artisans and solicited opinions on the possible prohibition of the import of articles that competed with those produced in Guatemala.5 Both the Economic Society and the Consulado recommended protective tariffs and restrictions on imports of some articles.6 In May 1844, however, with moderate liberal influence once more in the government, the Gaceta acknowledged that Guatemala should not adopt a totally protectionist system that might reduce commerce and cause serious shortages of necessary consumer goods. But it did argue that some way had to be found to "develop our products and to favor the small industries, artisans and workers of the capital and other considerable populations." It thus recommended that Guatemala develop cacao, flour, cane sugar, liquor, tobacco, and wrought iron, and prohibit imports of manufactured clothing, shoes, coarse textiles, and straw hats.7 At the same time the government tightened its customs controls, adding an additional inspector and raising fines for fraudulent declarations.8 Cattle raisers also clamored for protection, and in 1851 the corregidor of Suchitepequez informed the government that municipalities in his department had requested that a tax be placed on livestock imported from Mexicoand other places.9 By 1845 Guatemalan policy was theoretically committed to free trade among the Central American states, but to protection on trade beyond the isthmus. In practice, commercial relations with the other isthmian states were badly disturbed by the political problems already discussed.10 Several issues of the Gaceta carried translations of articles by European economists Consumption and Export / 373 questioning unrestrained free trade.11 In August 1845the Economic Society directed a formal statement on the question to the government, in which it called for an end to free trade...