Coahuila Y Tejas - Economy

Economy

For the most part, only enough food was grown for use in the area; little was exported. This was partially due to labor shortages and partly due to raids from native tribes. Wild game was abundant, and many families survived by hunting, keeping a few head of livestock, and subsistence farming.

Within Texas, the economy depended heavily on the cultivation of cotton. In 1834, Texas exported over 7,000 bales of cotton. Ranching was also lucrative, and Texas exported over 5,000 head of cattle in 1834. Lumber was exported in small quantities, primarily to Matamoros. In the mid-1830s, Texas imported approximately $630,000 worth of goods. Exports amounted to only about $500,000. The trade deficit resulted in a lack of currency in Texas; in a report to his superiors Juan Almonte estimated that only about 10% of transactions within Texas were conducted with specie.

Much of the trade was run by recent immigrants; few Tejanos were involved in exporting or industry. The newcomers may have had increased access to capital markets and to transportation, and may have had closer ties with, or at least a better understanding of, foreign markets.

Many inhabitants of the Mexican frontier chafed at rules that limited trade with the United States. As these areas, including Texas, were far from federal – and often state – control, smuggling was rampant. Coahuila did not have a coastline, and thus could not import goods from other countries. From 1823 through 1830, Texas settlers had an exemption on tariffs for some goods. Tariffs could not be collected on other goods because there was no customs house to collect the duties. A customs house was established in Anahuac in 1830, but the soldiers were expelled by settlers in 1832. A similar incident occurred in 1835, again resulting in the closure of the customs house. Texas continued to serve as a smuggling haven, with some of the goods being sent into the Mexican interior and into the territory of New Mexico.